Wednesday, September 19, 2007

Press Release: Webcasters Stand Firm

(Released in conjunction with SaveNetRadio and the stations listed below)

FOR IMMEDIATE RELEASE:

Webcasters Stand Firm

Deal With Us In Good Faith or No Deal!

Wednesday, September 19, 2007 SAN FRANCISCO, CA. – Thousands of webcasters stand firm by rejecting the most recent Copyright Royalty Rate proposal made by SoundExchange. The latest take it or leave it “offer” made by SoundExchange on behalf of the recording industry has done nothing to further negotiations with webcasters, and a mere 24 small webcasters have felt they had no choice but to give in to the record labels demands.

“The latest proposal made by SoundExchange is extremely disappointing, at a time where we need real progress, not hollow tricks.” SaveNetRadio spokesperson Jake Ward said. “While the clock continues to tick for webcasters, SoundExchange continues to play games with their good faith The resounding rejection of this offer should serve as a reminder to SoundExchange, and to Congress, that the webcasting community is intent on a lasting and fair resolution to this issue, and willing to fight for it”

We, the undersigned have made it very clear to the Sound Exchange exactly why this latest offer is unrealistic and unacceptable. Its terms are not viable for webcasters seeking to run profitable businesses. One such term is the newly added ATH (Aggregate Tuning Hour) cap which immediately makes many mid-level webcasters ineligible for the recently presented agreement. For stations with revenues far below the $1.25 million cap, but with healthy listener bases, this ATH cap forces payments at the CRB rates.

This deal is not feasible for anyone who wants to grow their business. It contains the aforementioned $1.25 million revenue cap, which limits growth and puts in place a dangerously low hard ceiling for revenue generation. The Small Business Administration revenue cap for over-the-air broadcasters to be considered a small business is $6.5 million – this would seem a fair cap, with precedent.

Also, the offer only covers copyright holders that are SoundExchange members, of which there are approximately 20,000. Between us, the undersigned webcasters played far more artists than that in the last year. Under the SoundExchange offer for artists not on that limited roster, webcasters would have to pay at the bankruptcy-level rates, which were set in the fatally flawed Copyright Royalty Board (CRB) ruling in March. Those CRB rates were condemned by webcasters, the press, and members of Congress and deemed as wildly out of line and detrimental to all parties concerned – including the RIAA.

We have asked for a reasonable, long term solution, not one that is subject to increase at the whim of the record industry every five years. 2010 is little more than 2 years away, and it would be difficult for any business owner to accurately forecast profits and build a successful business model with a huge expense variable looming in the future.

Although several of the webcasters listed below are currently involved in direct negotiations with Sound Exchange, the process remains exceedingly slow and increasingly unpromising. In the continuing absence of a genuine offer that would allow internet radio to continue to be the vital medium for new music discovery we implore our listeners and fans of internet radio to continue to urge your legislative representatives to pass the Internet Radio Equality Act (HR2060, S.1353).

For information on how you can contact your representative, please visit http://www.savenetradio.org.

Signed:

Jeff Bachmeier, .977
Val Starr, GotRadio.com, 100hitz.com
Rusty Hodge, SomaFM.com
Rick White, BigR Radio. 1faith.fm
Donnie Mowbray, 181.fm
Kurt Hanson, AccuRadio
Dave Landis, Ultimate 80’s
Bill Goldsmith, Radio Paradise
Ted Leibowitz, BagelRadio
Sal Amato, Dot1media
Brandon Casci, Loud City
Jim & Wanda Atkinson, 3WK
Ari Shopat, Digitally Imported
Mike Roe, Radio IO

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2 Comments:

Blogger corberlaw said...

Friday, September 21, 2007
Vampires and the RIAA
Ever notice how vampires operate? They suck your blood all the while making you think that they are doing you the favor.

It really does appear that the RIAA and its net representative, Sound Exchange, operate under the same principle.

The RIAA has the Copyright Royalty Board under its thumb and appears to dictate web policy to that board, the RIAA tells webcasters what they will pay or else they go to jail or get sued. This seems to be coercion to me.

So, in effect, the RIAA sets royalty payments unilaterally, sucks the funds from the webcasters and makes them think that the RIAA did them the favor.

If the RIAA had its way, there'd be no webcasting at all. Each note of music would have to be bought from one of the RIAA's constituent members. No more free music of any kind, no more fair use would exist, nothing without payment. Pay through the nose, then give up your nose.

One thing that webcasters forget as victims of this policy, they could put a stop to it fast. Just stop webcasting music. When the public starts complaining to Congress to do something about it, perhaps the RIAA can be controlled by reason and not avarice.

Victimizers often forget that if they destroy the victim, their victimization ceases and they have no source left from which to suck.

Unfortunately, the so-called musical performance artists contribute to this victimization by profiting from the RIAA's activities, whether vicariously or otherwise. You can't take your profits with a clear conscience when the agency collecting for you is known to be set on destroying the source of those profits.

Musicians can create music without an audience, but do they really want that?

Just some thoughts.

BRIAN LEE CORBER, CORBERLAW@AOL.COM, Panorama City, California 91412-4656, 818-786-7133.

September 23, 2007 3:34 PM  
Anonymous Anonymous said...

So how did it go?

September 26, 2007 8:36 AM  

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