Internet Radio Fairness Act would spur innovation

The following first appeared as a Guest Post I wrote as founder/CEO of AccuRadio and a member of the Small Webcaster Alliance. It appeared on Tuesday, the eve of yesterday's subcommittee hearing.

As an Internet radio broadcaster and member of the Small Webcaster Alliance, I've been involved in the issue of copyright royalty rates for Internet radio for many years. And I've seen vividly that the current royalty rate system threatens to strangle the life out of an industry that is providing both choices for consumers and opportunities for musicians.

Both in 2002 and again in 2009, after the U.S. Copyright Office published rate-setting rulings that would have bankrupted all or most Internet radio providers, Congress had to intervene and ask record labels to negotiate a more-workable rate with webcasters.

The resulting rates are still wildly higher than those paid by other forms of digital radio (i.e., satellite radio and cable radio) and have been barely survivable for most webcasters - with many forced to exit the business entirely. Meanwhile, other companies who could spur innovation in Internet radio remain on the sidelines due to concerns over unsustainable royalty rates.

The problem with the current "willing buyer/willing seller" Internet radio standard for rate-setting is that while it is intended to lead to a market-based rate, the fact that the large record labels negotiate as a group means that a true market rate has never actually been determined.

The result has been a nightmare for our industry ever since. Copyright Office decisions have forced webcasters - the ones that were able to remain in business - to pay unreasonably high royalty rates, hindering innovation and growth.

Last year, for example, Pandora paid more than 50% of its revenue in royalty payments and as a result, as seen in their SEC filings, the company has yet to make a profit. And if the leading firm in an industry has trouble breaking even, you may reasonably (and correctly) assume that most other webcasters are struggling even more. (Note that if my Small Webcaster colleagues and I had to pay royalties at the rates determined by the Copyright Royalty Board, most of us would have to pay more than 100% of our revenues in royalties!)

That's why we support the Internet Radio Fairness Act (IRFA). It doesn't set or change royalty rates for Internet radio - it simply modernizes the rate-setting structure in a way that will help create a more viable digital music business for everyone.

To do so, the IRFA would move webcasting to the more-traditional "801(b)" rate-setting standard, which balances the interests of the copyright owners, the copyright users, and the general public. It has been used successfully for decades in most rate-setting determinations, including for other forms of digital radio like satellite radio, cable radio, and even by record labels in cases where they are the copyright users.

The "801(b)" standard is a set of four criteria that Congress typically tells the Copyright Office to use in determining a royalty rate: (1) Maximize the availability of creative works to the public. (2) Insure a fair return for copyright owners and a fair income for copyright users. (3) Reflect relative roles of capital investment, cost, and risk. (4) Minimize the disruptive impact on the industries involved.

The current confusing mix of royalty-rate setting standards for digital radio is result of piecemeal legislation enacted as each new technology was invented. The result is a system significantly out-of-sync with the realities of the 21st century marketplace. It substantially hinders the growth of Internet radio businesses and platforms - and thus hurts consumers, musicians, and innovators.

For the music industry particularly, I believe that a thriving Internet radio industry could be a godsend. Webcasters like Pandora, AccuRadio, and others are already giving significant and valuable amounts of airplay to dozens of genres of music (ranging from bluegrass to EDM), hundreds of independent record labels, and tens of thousands of artists that otherwise would be unable to use the power of radio exposure to build their fan bases.

Passage of the Internet Radio Fairness Act will foster innovation in the industry. It will create jobs, benefit artists by giving them more opportunities to be paid for their work, and benefit consumers by giving them more listening choices.

It's a piece of legislation that every innovator in the music industry should support.

You can see this Guest Post in here:

Share this


Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

It is very good artical for all us. Thanks for giving this information. I am very glad to read it.
online book in jaipur

Hi sir this artical is so nice and i know more about this artical homework-writing-bristol

This is a great article thanks for sharing this informative information. I will visit your blog regularly for some latest post.
concurso publico

Keep doing awesome read few posts on this site and I consider that your web journal is exceptionally fascinating and has sets of fabulous data. game io

Many thanks for the exciting blog posting! Simply put your blog post to my favorite blog list and will look forward for additional updates. Simply wanted to write down a word in order to say thanks to you for those wonderful tips.

Top Secrets For Entrepreneurs To Succeed In Online Business.

Apple was founded in April 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. The headquarters of Apple Inc. have their Headquarters in Cupertino California

imessage for pc

Great stuff. I was searching on this topic for a long time. Now I get clear information about this topic. Keep on posting good stuff. - Telephone Survey Services


If customers want instant solution may reach us via mac support number+1-800-392-9127 Toll-Free. mac customer service

Yes, I really appreciate your posting on the topic of TV. Thanks for the sharing.
Money making

I think this is an informative post and it is very useful and knowledgeable. therefore, I would like to thank you for the efforts you have made in writing this article.
How to draw for kids

Og youtube apk is one of the best music streaming android app. It present hundred of musics to the users. So, if you are music lover, you can also try spotify premium apk download

The choice of someone else's surrogate child. Ovum-removing actress adopted a colorful child, still alive and bright

Best Friendship Shayari in Hindi, Celebrate this wonderful relation with some lovely friends. Read and forward to friends on Friendship Day this wonderful Friendship shayaris.

IF you are facing issues while recovering it and Driver installation has also failed Windows in your HP device and you need help from the experts then you should get in touch with the experts through hp customer Support

Call on incredimail phone number to Purchase IncrediMail Subscription through PayPal!


artikel yang sangat bermanfaat

distributor acrylic

tulisan yang sangat menarik untuk dibaca

mesin las

artikel yang sangat bermanfaat

Souvenir Promosi

good information bro!!

Toko Burung

Anda mencari produk Furniture jepara dengan desain minimalis ataupun klasik asli mebel jepara dengan harga murah. kami menyediakan berbagai tipe atau model produk mebel terutama dengan menggunakan material kayu jati. Disni saya menjual produk produk mebel mulai dari kursi tamu minimalis meja makan jati tempat tidur dan sebagainya. Untuk indormasi lebih lanjut anda bisa langsung menuju katalog website kami. meja makan mewah Produk produk yang kami tawarkan mempunyai kualitas tinggi dan kami menawarkannya dengan harga yang cukup terjangkau Produk produk yang kami tawarkan mempunyai kualitas tinggi dan kami menawarkannya dengan harga yang cukup terjangkau, tentunya kualitas produk tersebut akan kami jaga.
Produk bufet tv mewah selalu banyak diminati oleh banyak konsumen baik itu dari dalam maupundari luar negri. Banyak sekali turis turis asing berbondong bondong ke jepara dengan tujuan yang sama seperti anda yaitu untuk mencari produk sebagai produksen furniture memberikan anda kemudahan untuk berbelanja produk furniture jepara dengan aman melalui transaksi online, kami menyediakan berbagai model di dalam katalog website kami. Anda cukup duduk santai di ruamh, kami kerjakan produk pesanan anda dan tentunya kami akan memberikan garansi jika produk tidak sampai ke tangan anda ataupun produk tempat tidur jati yang anda pesan tidak sesuai dengan pesanan. Setiap produk kami, kami proses dengan sangat terkontrol, baik itu dalam hal pemilihan kayu, proses kontruksi, pahatan ukir hingga proses finishing. Oleh karena itu kami sebagai perusahaan selalu mengutamakan kualitas produk serta meningkatkan pelayanan yang ramah kepada anda. Jepara memang dikenal sudah sejak lama sebagai kota industri sofa mewah terbesar di asia hingga dunia. Kualitas produk dari jepara sudah banyak di akui oleh beberapa negara. Kota Jepara sendiri selalu menjadi langganan aktif dalam setiap pengadaan pameran furniture Banyak sekali produk produk yang di tawarkan disana, baik itu dengan model minimalis ataupun klasik. Salah satunya yang menjadi produk unggulan mebel jepara yaitu kursi tamu mewah yang sangat cantik dengan keaslian ukiran khas mebel jepara yang terukir rapih dan halus di setip sudutnya. Ada juga produk unggulan lain seperti tempat tidur, meja makan, set meja makan dan banyak lainnya. Oleh karena itu mulai dari lima tahun terakhir kami sudah mengembangkan untuk pembelian produk furniture

sewa kantor murah jakarta

Virtual Office

s the great article, thank you

filter air

Among the proposed display modes, Samsung TV leaves its competitors far behind, but when determining the pros and cons of this feature there are nuances. Khasiat Walatra Sehat Mata Softgel

Produk Walatra

Obat Pembersih Rahim

articles that are very interesting and informative, I am very impressed with what is written, thank you for the information, hopefully updated the latest and interesting news


I think this is an informative post and it is very useful and knowledgeable. therefore, I would like to thank you for the efforts you have made in writing this article. بهترین وکیل دادگستری

this is really nice to read..informative post is very good to read..thanks a lot!
Car Equity Loans Tampa

Your article is very useful and has good knowledge. I appreciate your efforts and all the best. It's very useful information. I will be waiting for your next post. zynga

interesting article

The Kerala Board of Education is going to release the SSLC Result 2018 this may month 2018

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Post new comment

  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd>
  • Lines and paragraphs break automatically.

More information about formatting options

By submitting this form, you accept the Mollom privacy policy.