Senators Ron Wyden (D-OR) and Sam Brownback (R-KS) have an amendment pending in the Senate Judiciary committee to vacate a ruling by the Copyright Royalty Board that will likely increase Internet music royalties by an astonishing 300 percent to 1,200 percent, putting a horrific squeeze on the still-nascent medium. From Technology News Daily:
Currently, terrestrial radio stations only pay royalties to songwriters. Internet radio and satellite radio pay royalties to both songwriters and record companies/recording artists. However satellite radio only pays royalties of 7.5 percent of their revenue. The Internet Radio Equality Act of 2007 corrects the enormous disparity created by the CRB by putting Internet radio on par with satellite radio. Additionally, the legislation would create special royalty rules for the Webcasting arms of non-commercial broadcasters like National Public Radio and college radio to ensure they are not left out of reaching new listeners on the Internet.
“Our bill is about standing up for folks ranging from a small Webcaster in a basement in Corvallis to an innovative startup in Beaverton to a new band trying to be heard in Portland to a huge music fan in Coos Bay” Wyden said. “Keeping Internet radio alive is part of a broader issue that is important to me — keeping the e-commerce engine running by preventing discrimination against it.”
Okay, so all of this means that my favorite music website is in dire need. I just got this via email:
Hi, it’s Tim from Pandora,
I’m writing today to urgently ask for your help. Our future and that of all webcasters is being threatened by the actions of the RIAA (Recording Industry Association of America). In an effort to cripple Internet radio they have defied Congressional direction to negotiate reasonable performance fees and are trying to shut us down.
In spite of overwhelming opposition, including from thousands of musicians, they have blatantly pursued a strategy of undermining the process, making outrageous demands, and trying to run out the clock, hoping we will just quietly fade away. There is only one way to stop this violation of the public trust, and that is by mobilizing the collective will of our listening audience.
I am writing to you because your Senator is on the crucially important Senate Judiciary committee. It would be tremendously helpful if you would take just a minute to call your Senator:
Senator Patrick J. Leahy: (202) 224-4242
** When you call, please tell them your home town, and ask them to support the Brownback Internet Radio Equality amendment that will be considered in the Judiciary Committee this Thursday.
This amendment sets webcasting royalties at the same level as those paid by satellite radio, which would compensate musicians fairly and allow web radio to survive. For more info on the bill, please visit: www.savenetradio.org
I hope you’ll take just a few minutes to call. It’s easy to do and it will truly, truly make a difference. As a young industry, we do not have the lobbying power of the RIAA. You, our listeners, are by far our biggest and most influential allies.
Pandora.com keeps me sane on challenging workdays. If you’ve never visited – you should. It’s plugged into what it calls the “music genome project” – a genre/style/artist database that uses some clever logic to create user “radio stations” queued to the listener. What that means is that you can plug in the name of a song, artist or style, and the system will generate a playlist for you – often of cool music you’ve never been introduced to before.
It’s awesome – not only for listeners, but for more obscure musicians. I’ve been introduced to so many performers I’d otherwise never have heard of. Trying to price these folks out of existence is one of those cutting off of noses to spite faces (and make the quick bucks now at the expense of the long term health of the industry) policies. It’s unreasonable, unfair, impractical – and by god it will wreck my life! (okay… maybe not my life, but… you know).
Once again, its time to save the music industry from itself. Why does it seem like we have to do this every couple years?