The US Copyright Office has decided to halve the rate that
webcasters should pay to record labels for delivering music
on-line. Webcasts, properly known as digital audio transmissions,
will be charged at a rate of 0.07 cents per song per listener.
Small webcasters have complained that the rate is still too high.
For some, it will exceed their annual revenues.
On 21st May, the Librarian of Congress, James Billington,
rejected a decision of the Copyright Arbitration Royalty Panel that
suggested a rate of up to $1.40 per song per 1,000 listeners for
non-subscription services.
Webcasters had complained that the original rate was much too
high and would drive them out of business – although that could
have been good news for webcasters outside the US. Small webcasters
yesterday complained that the new rate is still more than they can
afford. They had asked that royalties should be calculated only as
a percentage of revenues.
The ruling requires payment by 20th October of royalties for all
internet webcasting dating back to 28th October 1998, which is
expected to approach a debt of $1 million for the largest
webcasters. The new rates take effect on 1st September. The
decision can, however, be appealed.
More information is available at:
www.copyright.gov/carp/webcasting_rates.html
