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WASHINGTON, Nov. 5 /PRNewswire-USNewswire/
-- The SaveNetRadio Campaign today expressed surprise and hope
upon learning that SoundExchange has formally proposed that
cable radio services pay royalties between 7.25% and 7.5% of
their revenue to sound recording copyright owners and recording
artists. This proposed rate, effective from 2008 to 2012, is
virtually identical to rates endorsed by more than 140
cosponsors of the Internet Radio Equality Act, but rejected by
SoundExchange and the Recording Industry Association of America.
"Perhaps this agreement means
that SoundExchange agrees that 7.5% of revenue is a fair rate;
they just prefer that the rate not be legislated," Jake Ward, a
spokesperson for the SaveNetRadio campaign said. "The Internet
radio industry has never asked for more than royalty parity and
an opportunity to grow their businesses to the benefit of
artists, consumers, and even record labels. Perhaps
SoundExchange's agreement that cable radio should pay 7.5% of
revenue is a precursor to an equivalent offer for Internet radio
services. It is hard to imagine that recording industry
interests would continue to reject Congressional legislation and
webcasters' efforts to set fair royalty rates while
simultaneously agreeing to the same standard for cable radio
services."
The Internet Radio Equality Act
-- H.R. 2060 and S. 1353 – would vacate the March 2nd Copyright
Royalty Board's decision and set a 2006-2010 royalty rate at a
competitive level with royalties paid by cable and satellite
radio services (7.5% of revenue.) The bill would also change the
royalty rate-setting standard used in royalty arbitrations, so
that the standard applied to webcasters would align with that
applied to cable and satellite radio.
For more information on the
SaveNetRadio coalition visit
http://www.savenetradio.org
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