Inslee calls CARP decision unfair; weighs legislation (Internet Radio Deathwatch)

SaveInternetRadio.org & RAIN:Radio And Internet Newsletter ^ | 6.21.02

[mhking]

From their press release: "U.S. Reps. Jay Inslee and Rick Boucher reacted to this evening's determination by the Librarian of Congress to cut in half royalty fees charged to webcasters. Inslee and Boucher are also considering legislative action that would more effectively ensure fair payment to music creators while continuing to maintain a diverse, innovative Internet medium for music broadcasting.

"Following the Librarian's decision, Inslee and Boucher made the following statement:

"'We are moderately encouraged that the Librarian of Congress reduced the rates for Internet-only webcasters to the same level AM/FM radio Internet broadcasters. We remain very concerned, however, that this rate will lead to the elimination of hundreds of small businesses and does not provide a viable model to serve both the Internet radio industry and recording artists.

"'Unfortunately, these rates are a direct result of the flawed "willing-buyer/willing-seller" standard that Congress mandated the Librarian of Congress use in determining these rates. Instead of assessing a fair rate, the flawed standard instead requires the arbitrators to try to replicate willing buyers and willing sellers in an already flawed marketplace.

"'While the Librarian of Congress clearly went to great lengths to change the burdensome Copyright Arbitration Royalty Panel (CARP) ruling, we believe that such a contorted process and poor outcome can be avoided by changing the standard guiding the Librarian's decision-making and removing other obstacles in current copyright law that were identified by the Librarian.

"We will be considering legislation to change the standard from "willing-buyer/willing-seller" for Internet radio to the traditional fair market formula used by other CARPs. In addition, we want to ensure that all future Carps must take into consideration small business concerns and allow effective participation of small, niche and noncommercial entities. We believe these standards will allow for the development of a viable Internet radio industry and ensure that artists, writers, and record labels are fairly compensated.'

"The 'willing-buyer/willing-seller' standard requires that the CARP establish royalty rates for Internet radio based on market transactions between the record labels and the Internet broadcasters. There has only been one such transaction in the marketplace since the law was passed, and that contract was terminated prematurely by the webcaster. Therefore, the CARP did not have enough information on viable contracts from which to make a rate determination."

[mhking]

As I noted in the earlier thread, the deathwatch has begun. Several web-only stations, citing the precedent set last night, have ceased transmission.

The only commentary from the RIAA (Recording Industry Association of America) thus far is a charge that the rate set by the copyright office was too low:

“The import of this decision is that artists and record labels will subsidize the webcasting businesses of multi-billion dollar companies like Yahoo, AOL, RealNetworks and Viacom. The rate, which cannot be squared with the decision of the arbitration panel, simply does not reflect the fair market value of the music as promised by the law. This decision will certainly reinforce the steadfast opposition of copyright owners to compulsory licensing.” --RIAA Pres. Cary Sherman

Yet, (IMHO) solid proof that the RIAA only cares about their continued shakedown of those involved in this fledgling industry, and if it dies, so what.

Looks like RIAA may get their wish.

[Morgan in Denver]

Not to nitpick, but I sure wish this story included the state and party of U.S. Reps. Jay Inslee and Rick Boucher.

[angry elephant]

Jay Inslee is a Dim from Washington state.

[mhking]

Internet Radio Deathwatch:

Tag's Trance Trip (http://www.tagstrance.com/) -

I regret to inform everyone that I must shut off the stream today at 5pm, until further notice. I cannot afford these rates :( Special thanks to the RIAA and Lobbyist who helped destroy my dream. Thank you for listening, you've enriched my life, as I hope I have yours.

Stephen 'Tag' Loomis

PS: I'm going to be shutting down tagstrance.com in about 2 weeks or so... If you'd like to be on the mailing list for updates and new information, please send an email to notify@tagstrance.com and I will send you preiodic updates about how things are progressing. I'm down, but I'm not out. So get on the mailing list and we *WILL* stay in touch. Thank you friends! :)

Atlanta BlueSky (http://www.atlantabluesky.com/) -

Earlier today, the Library of Congress decided to give the Recording Industry Association of America .0007 per LISTENER per SONG for any and all web casts, including ours. What this means, is that, as an example, we had 100 listeners today (June 20). If those 100 listeners heard 250 songs, the charge to me would be $107.50 JUST FOR TODAY. Carry that out as a one month average, and licensing fees alone for my station would be $3225.00 PER MONTH. Obviously, we are too new and too small to absorb that kind of cost. I'll be reading the online information regarding this ruling most of tonight, and making a determination as soon as the process is fully understood. If these rates however, are to go into effect without appeal immediately, then I am indescribably sad to tell you that we will be forced to shut down within the next 24 hours. If there is any way to weather this storm, I will, until the bitter end. But I think you can all understand the predicament this places us in. It's a very sad thing to see our government side with big business to the extreme that small business is eliminated from competing. I honestly didn't believe this would happen, but it has.

Sincerely,
Michael Monahan
Atlanta Blue Sky

[Morgan in Denver]

Thanks, I really appreciate the information.

[ratdog]

The music industry acts like a bunch of libs insomuch as they say one thing and do another. They have always wanted to get the music out there as much as possible, and have paid much money to do so, so that it would be heard. Now, they have what they wanted for FREE (free "air" play) and they are shutting them down.

[mhking]

The Internet Radio Deathwatch continues:

SomaFM.com's music streams are no longer on the air. From their front page this morning:

Killed by the RIAA. June 20, 2002.

With CARP royalties of $500 a DAY, SomaFM cannot continue broadcasting.

The final decision on webcasting rates have been published on the Library of Congress's site. To say the results are disappointing is an understatement. While the rates were effectively cut in half, that still means that to stay on the air, SomaFM will have to pay about $500 a day in fees to the RIAA. Just to expose you to new music that you wouldn't hear anywhere else. Just to help you buy more records. Do they just not get it, or is the RIAA just greedy?

To quote from their announcement: The most significant difference between the CARP's determination and the Librarian's decision is that the Librarian has abandoned the CARP's two-tiered rate structure of 0.14¢ per performance for 'internet-only' transmissions and 0.07¢ for each retransmission of a performance in an AM/FM radio broadcast, and has decided that the rate of 0.07¢ will apply to both types of transmission. Some of the rates for noncommercial broadcasters have also been decreased, and the fee webcasters and broadcasters must pay for the making of ephemeral recordings has been reduced from 9% of the performance fees to 8.8%.

[sigSEGV]

I'm VERY pissed about losing my favorite stations. I don't blame the RIAA as much as I do the f'd up Federal Government. Did I mention I was pissed?

[mhking]

I'm VERY pissed about losing my favorite stations.

Mind you this is on the heels of the RIAA successfully getting AudioGalaxy.com to yank access to 90+% of all music on their network as of Monday of this week. This is not a good thing.

[sigSEGV]

And the sad thing is, everyone I talk to thinks this is just another Napster debate about people stealing music.

[Fergus MacCool]

If you enjoy the diversity of internet radio I beg all fellow Freepers tae write Congress aboot this injustice. Here is a copy of ma letter:

Hello and thank you for your time,

I manage Celtic Pub Radio, an internet station which streams from Live365.com.

Per agreement with Live365, I recieve no compensation whatever for my formatting and voice production work. No banner ads, no on air ads, no promotion of any kind.

The station streams Irish and Scottish music produced by independent artists who have no connection with the RIAA in any form. I provide cultural music which cannot be found anywhere on AM or FM stations. While my listener base is comparativly small, I draw 600 to 1100 listening hours per 30 days and over 1000 listeners have bookmarked my stream.

The sound quality of this stream is poor (32 kilobytes per second) as compared to a CD (192 kbps) and is streamed in m3u format which cannot be recorded and played back as a mp3 file can.

I cannot believe it was the intent of Congress to shut down stations such as mine by passing the DMCA.

The decision by the Library of Congress on Carp has placed such an unfair monetary burden on Live365.com (which was already reeling from the dot.com dwindling advertising revenues} that even if it survives, the prices it will have to charge us to stream will drive me and thousands of other broadcasters off the air.

Please intervine, change the DMCA and do it quickly before we, who offer alternative music are swallowed by the RIAA monopoly.

In effect, what the RIAA is after is censorship and total control of all musicions and broadcasters. I can't think of anything more un American.

I say again, protect freedom and freedom of expression.

Sincerely,

Fergus MacCool

[Fergus MacCool]

Self serving bump

[jayef]

Bumping. Well most streams have been down about a week now. I'm just sick. What is this, RUSSIA?

[Fergus MacCool]

Thanks fur the bump jayef. This is indeed aboot gradual loss of freedoms. It would be one thing if the RIAA supported artists. Instead, they want only top 40 artists playing the same songs over and over again on every radio station (internet and terrestrial) in the country. New artists die on the vine unless they are deemed pretty enough tae sell Pepsi on TV.

Internet radio provides the mediam for diverse new artists (independent and RIAA signed) tae get exposure and sell CDs.

Celtic Pub Radio will remain on the air as the rate hike we huv recieved at live365 is affordable for now. I cany speak for the other thousands of broadcasters there and elsewhere on the web.

Tune in sometime: http://www.live365.com/stations/150087?play

Related link: http://www.freerepublic.com/focus/news/705358/posts

Please keep writing Congress fur relief.

Cheers!....Fergus