Surprise, Surprise, Surprise

Thanks Rusty for keeping us in the loop!

 http://somafm.com/blogs/rusty/2007/09/more-bullshit-from-riaa-via.html

More Bullshit from RIAA via SoundExchange

RIAA has SoundExchange issue press release to try and trick congress into thinking the royalty situation has been solved. Nice work guys.The reason many people are signing is because they fear lawsuits from the RIAA. RIAA representatives have been calling webcasters and telling them if they didn’t sign by Sep 15th, they would be operating in violation of the law. That’s the only reason they signed. It’s like a Sporano’s episode.

The only way that webcasters can escape the high royalty rates is by signing this current agreement and only playing SX affiliated label music. This means less independent music, and more big label music. Which is exactly what the RIAA wanted. This agreement is useless to SomaFM because it doesn’t even cover half of the music we play.Here’s the release:

Small Webcasters Embrace SoundExchange Offer on Discounted Rate – September 18th, 2007Individual Agreements Allow Small Internet Operators Subsidized Rates Through 2010

Contact Richard Ades or Gregg Perry 202.640.5894 news@soundexchange.com

WASHINGTON, D.C. – SoundExchange announced today that significant numbers of small commercial webcasters have signed agreements that allows them to continue operating through 2010 with essentially the same terms they have enjoyed under the Small Webcaster Settlement Act (SWSA). These agreements – sent in late August and signed individually with each webcaster – guarantee the same rates through 2010 that qualified small webcasters have received since 1998 for the use of sound recordings owned by SoundExchange members. The agreements are retroactive to January 1, 2006, which is the beginning of the current rate period, and continue through December 31, 2010, at which time new rates will be set either through negotiation or by the Copyright Royalty Board (CRB).

“Giving small webcasters more time to build their businesses with below-market rates is something Members of Congress wanted us to get done, and we have,” said John Simson, Executive Director of SoundExchange. “We hope that these small webcasters will continue to provide innovative kinds of programming and a rich diversity of music.”

Twenty-four small webcasters have already signed the agreements with others indicating they are in the process of signing. Some opted not to sign the agreements because their business models benefit more from the regular commercial rates (due to their size and the difference in minimum payments). Others did not sign because they operate via webcast aggregators who handle payments on their behalf.

Qualified small commercial webcasters who accepted the offer are now able to stream sound recordings of any and all SoundExchange members at subsidized rates. SoundExchange represents more than 28,000 recording artists and 3,500 record labels, including all the major recording companies. As part of the agreement, small webcasters (defined as those earning $1.25 million or less in total revenues) would pay royalty fees of 10 or 12 percent of revenue. The agreement also includes a usage cap to ensure that this subsidy is used only by webcasters of a certain size who are forming or strengthening their businesses.

“It’s a sacrifice our members are willing to make at the request of Members of Congress and in order to give the smallest webcasters below-market rates for an additional limited time,” added Simson. “This is a great deal for someone who wants to start or build a webcasting business.”

# # #

Gee. 24 webcasters signed this. If you’re a webcaster and signed it, I’d like to hear your reasons for signing it.The usage cap is also a joke: if you average more than about 6900 concurrent listeners- about the audience of a single commercial station in a mid-sied market.

There are thousands of small webcasters. And only 24 have signed on? That tells you just what a huge problem this really is.

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