Rep. Chaffetz's Internet Radio Fairness Act would require rates based on same Copyright Act standard

Posted by

Issue Date: 
Jul 19 2012 - 12:40pm

From Issue:

Utah Republican Congressman Jason Chaffetz has reportedly begun crafting a bill aimed at bringing Internet radio royalty rates more in line with those of other radio platforms. The bill's key feature is a change from the controversial "willing buyer/willing seller" standard in webcast royalty determinations to the more prevalent "801(b)" standard.

Chaffetz says his Internet Radio Fairness Act of 2012 is still in draft form and isn't yet ready to be introduced. But he plans to determine his next steps by the end of this month.

When Copyright Royalty Board (CRB) judges determine the royalty rate at which webcasters pay copyright owners and performers for the use of sound recordings, they do so based on the standard -- mandated by the DMCA -- of what a "willing buyer" and a "willing seller" would agree to in a hypothetical marketplace. The judges do not (and in fact, are instructed to not) consider the "real world" ramifications of their determination, only the perceived economic value of the right. The Internet radio royalty process is unique in this way, as royalties for satellite and cable radio are based on the Copyright Act's more well-known 801(b) standard. Royalty determinations for what labels pay music publishers and songwriters are also based on 801(b).

"In setting royalties, (801(b)) assesses not only the economic value of the sound recording, but also the public interest in the wide dissemination of the copyrighted material and the impact of the royalty on the service using the music," explains attorney David Oxenford (here). Among other objectives, judges using 801(b) are instructed to set rates that "minimize any disruptive impact on the... industries involved." (Read 801(b)(1) of the Copyright Act here.)

How much of a difference does this standard make? Consider that satellite radio operator SiriusXM pays around 8% of its revenues for the right to use copyright sound recordings in its broadcasts, based on a determination using the 801(b) standard. Pandora, on the other hand, says nearly 70% of its total revenue (based on its Q1 FY 2013) will go to royalty payments (and that's based on on a deal Pandora struck that actually decreased its obligation from the CRB decision -- a decision based on "willing buyer/willing seller").

"It seems screwy that royalty rates change so dramatically based on the platform," Chaffetz explained. "When you’re listening to music in your house or in your car, you may be listening to it on your iPhone, you may be listening on the satellite radio or the FM radio. Does that mean the royalties should be so vastly different? It doesn’t seem to make sense to me. We need to play catch-up here."

A summary of the bill (according to news source The Hill) says the legislation also aims to "improve the proceedings process for rate-making cases and ensure judges on the Copyright Royalty Board have the same legal background and expertise as federal court judges who consider copyright cases."

Chaffetz says he expects push-back from the recording industry, and remains open to labels' input. "We’ll flesh all that out. I have no doubt we’ll have a good, lively discussion on that. There’s plenty of money to be made by all the various interests, it’s just I think moving toward parity is an important principle," he said.

The "801(b) vs. 'willing buyer/willing seller'" issue has come up multiple times in the history of Internet radio. The Performance Rights Act, which would have imposed a sound recording performance royalty on broadcast radio, would have moved webcast rate determinations to 801(b) (see our coverage here). Attorney David Oxenford wrote about the inherent unfairness of using different standards by platform in early 2008 (see RAIN coverage here). That same year Senators Ron Wyden (D-OR) and Sam Brownback (R-KS) introduced their Internet Radio Equality Act, which would have, like the PRA and Chaffetz's new bill, given Internet radio the 801(b) standard. That effort stalled by July (see RAIN coverage here). We have tons more coverage and analysis about 801(b), here.

Read more from The Hill online here.

Comments

support bills for good cause

If the bill is for good cause, I wish them success.
warm regard from http://ledlightsfortrucks.net

Video Manuals

A live Hotspot installation works happily on any standard Windows PC, requiring only an extra network card. Even with a single card you can download and try out the free trial, exploring your simple but very comprehensive and tabbed control panel. Video Manuals

Video Manuals

A live Hotspot installation works happily on any standard Windows PC, requiring only an extra network card. Even with a single card you can download and try out the free trial, exploring your simple but very cVideo Manualsomprehensive and tabbed control panel.

Chevrolet has nicely involved

Chevrolet has nicely involved 100 % free use of OnStar urgent and curbside support services with buy of either the 1HY or 2HY Chevrolet Silverado Multiple. Bali Furniture

John Zoellick declared among

John Zoellick declared among 6 ideal styles seeking at strengthening the developing role that we play and our institutional potential to reply more successfully to the. Rain L

There is a lot of cash to be

There is a lot of cash to be created by all the various passions, it’s just I think shifting toward equality is an essential concept," he said. COMMERCIAL PLUMBER SAN DIEGO

Well written, looking forward

Well written, looking forward for me as I’m a reader myself and I almost read the entire topics that I have ever come across.
Assassins Creed Jacket worn by Connor Kenway

The information and the

The information and the detail were just perfect. I think that your perspective is deep, its just well thought out and really fantastic to see someone who knows how to put these thoughts. Mens Dating HQ

Hindustan Samachar, The

Hindustan Samachar, The nationwide information organization which was established in the several years of Forties, was the first to offer the information solutions in Indian native 'languages'. same day guarantor loans

This is truly what I was

This is truly what I was looking for. Extremely happy and Thanks for sharing this fantastic article! That is very interesting information and great benefits will accrue from this...www.cheapbabyclothe.com

Creating blog reactions

Creating blog reactions allows loved ones to help be a part of within for the conversation in regards to topic in which interests these people. Led Light Bar

excellent. one of the best

excellent. one of the best articles I have every read. Ecopolitan Executive Condo Tembusu Vue 8 inflora condo inflora keep it up !

Thanks for the insensitive

Thanks for the insensitive visual, Gawker. You people are really on factor with the hipster racial discrimination. So interesting and funny.used panties for sale

It determined to mix the

It determined to mix the things up in a number of activity. Idol universities up-dates is a kind of the encounter, which process friends to one-on-one battles via online multi-player. signficato tatuaggi

Out with the old and in with

Out with the old and in with the new! Get that stunning new fitting out of the box and take a look at the guidelines that came with it. Most lights have a particular purchase in which they are set up,see page

The United states citizens

The United states citizens organised the Republican Celebration for this years financial problems. click for more info

The Internet radio royalty

The Internet radio royalty process is unique in this way, as royalties for satellite and cable radio are based kansasmtgloans.com

Your design

Your design of composing is so motivating that I too have created . Urban Street Clothing

You are referring to

You are referring to killstreaks. Which don't add into the factor but do offer more investing coin http://www.parallaxia.com/

The Writer has been

The Writer has been successful in hightlighting some excellent factors through this publish, and I can discover individuals accepting to it such as me. unlock htc one

Pasir ris professional

Pasir ris professional apartment Sea Skyline professional apartment has full and exclusive features, such as a secure house, club house Link

Dear God, You show me the

Dear God, You show me the direction to lifestyle. We compliment you, God. You set me 100 free. Sell My House Fast Orlando

It should be noted that

It should be noted that whilst ordering papers for sale at paper writing service, you can get unkind attitude... this website

This is exactly what I was

This is exactly what I was looking for. Thanks for sharing this great article! That is very interesting Smile I love reading and I am always searching for informative information like this.. Park Slope Lawyer

This is what it is today.

This is what it is today. Most music are stream online and many listeners want to listen their favorite music via their laptops, mobile phones and tablets. causes erectile dysfunction

A website's security

A website's security certificate gives users extended security by encrypting data between the user's browser and the Web server. Headaches

Interesting topic for a blog.

Interesting topic for a blog. I have been searching the Internet for fun and came upon your website. Fabulous post. Hallmark ornaments at The Ornament Shop

Thanks to seefracht spedition

Thanks to seefracht spedition for professionally fulfilled tasks! Very good indeed! thank you, guys, again.

Kim K Superstar

I was verifying

I was verifying consistently this web blog and I’m impressed! Extremely details specifically the last part I care for such information and facts much. I was searching for this certain details for some time..
SENSUAL SLEEVELESS DRESSES

I have enjoyed this great

I have enjoyed this great information so much. This was really very interesting and helpful to read. I cant wait to read more from this site. Summer Style The Jersey Dress

t's good to see you verbalize

t's good to see you verbalize from the heart and your clarity on this important subject can be easily observed. How To Grow Taller

Your site contains useful

Your site contains useful information on this topic as I am working on a school project. Thank you posting relative information and its now becoming easier to complete this topic. get an erection

I think the standards that

I think the standards that have put in place here is so good. So many great benefits will come from it in the future. I hope they push this more in the future here. Fashion Blog

The content of this field is kept private and will not be shown publicly.
  • 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.