[ARSCLIST] Fwd: For Immediate Release - DiMA, Recording Industry and Artists File Joint Petition for 2005-06 Internet Royalties

[Eric Jacobs <ericj@xxxxxxxxxxxxxxxxxxx>]

For those of you who follow web-based media royalties...

Eric Jacobs
The Audio Archive


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Date: Tue, 31 Aug 2004 11:43:53 -0400
From: "Zandria Conyers" <zconyers@xxxxxxxxxxxxxxxxx> Add To Address Book 
Subject: For Immediate Release - DiMA, Recording Industry and Artists File 
Joint Petition for 2005-06 Internet Royalties 
To: dima_media@xxxxxxxxxxxxxxxxxxx, dima_news@xxxxxxxxxxxxxxxxxxx 


Digital Media Association 
Press Release 

For Immediate Release Contact: Zandria Jacobs-Conyers 
(202) 775-2664 (office) 
(202) 285-6503 (cell) 
zconyers@xxxxxxxxxxxx 


August 31, 2004 


DiMA, Recording Industry and Artists Propose 
Internet Radio Royalty Extension 



Washington, D.C. - DiMA and SoundExchange (the royalty 
collective that represents recording companies and artists) 
have jointly proposed to the U.S. Copyright Office that Internet 
radio sound recording royalties remain the same for the next year 
or two, while Congress considers whether to revamp the process by 
which arbitrators determine royalties for all statutory copyright licenses. 

“DiMA companies continue to believe that royalties paid by our 
industry to sound recording companies and artists are unfairly high 
and above-market-rate,” said DiMA Executive Director Jonathan Potter, 
“especially as compared with royalties paid to songwriters by all 
performance media and royalties paid to recording companies and artists 
by broadcast radio, cable radio and satellite radio.  Nevertheless, in the 
interests of focusing our industry’s limited resources on the continuing 
effort to build profitable businesses and defeat piracy, DiMA has agreed to 
avoid arbitration and the associated costs for at least another year or two.” 

The proposed Settlement, which was submitted to the U.S. Copyright Office 
August 30, must be approved by the Copyright Office following publication in 
the Federal Register and review of public comments. The Settlement would 
maintain 
existing royalty rates through the end of 2006. However, the Settlement would 
terminate at the end of 2005 if Congress extends the standard royalty term from 
two years to five years (as the House has approved in H.R. 1417, the Copyright 
Royalty Distribution and Reform Act of 2003).  If the law changes the parties 
would 
renegotiate or arbitrate royalty rates with respect to the new five-year period 
(presumably for the years 2006-2010). 


For more information about the proposed Settlement, see FAQ’s below and 
attached petition, or visit www.digmedia.org.   




FAQ’s: 


Under this proposal how much will Internet radio services pay 
to recording companies and artists? 
A:  The royalty is calculated in one of three ways, as selected 
by each Internet radio service.  Companies can choose to pay a 
set amount per song/per listener (0.0762 cents), or can pay a 
set amount per listener hour (1.17 cents), or if the service is 
a subscription service, can pay 10.9 percent of subscriber 
revenue (with a minimum monthly payment of 27 cents per subscriber). 



This Settlement has been described as a proposal to the U.S. 
Copyright Office.  What is the process and timeline for its 
consideration and approval? 
A:  The Copyright Office will publish the proposed Settlement 
on its website and in the Federal Register in the next few weeks, 
and will allow interested parties to submit comments in support of 
or opposing the proposed rates and terms.  After reviewing the 
proposed Settlement and any comments, the Copyright Office will 
decide whether to approve the Settlement. 



Why are these royalty payments required of Internet radio services? 
A:  The Digital Performance Right in Sound Recordings Act requires 
that recording companies and artists be paid a royalty for the use of 
their music by Internet radio, cable radio and satellite radio. 



Does broadcast radio pay these royalties? 
A:  No.  The legislation passed in 1998 explicitly exempts broadcast 
radio from the royalty requirement. 



Do all digital radio services pay the same royalty? 
A:  No.  As discussed in a recent hearing of the House of Representatives 
Subcommittee on Courts, the Internet and Intellectual Property, cable and 
satellite radio sound recording royalty rates are governed by a much more 
favorable standard than are Internet radio royalty rates.  As a result of 
the different royalty-setting standards, Internet radio services pay 50 
percent higher royalties than cable and satellite radio. 



Are there lower royalty rates for small Internet radio companies? 
A:  The Small Webcaster Settlement Act of 2002 authorized the 
recording industry and small Internet radio services to negotiate 
lower royalties. A small-company royalty was agreed-to for the 
years 1998-2004, but it is not certain whether the parties 
to that Agreement will choose to renew it. Today’s proposed 
Agreement does not relate to the small-company royalty. 



**************************************************************** 
DiMA is the only trade organization devoted exclusively to meeting 
the need of digital media artists, consumers and producers.  DiMA 
represents companies that develop and utilize digital technologies 
that enable and provide Internet music and video content.  DiMA 
always supports fair payment to artists and creators.