SoundExchange Offers Small Webcasters Discounted Rate Agreement Through 2010

SoundExchange Offers Small Webcasters Discounted Rate Agreement Through 2010

Enables Small Commercial Webcasters to Continue Streaming in a Business-Certain Climate

WASHINGTON, Aug. 21 /PRNewswire-USNewswire/ -- In response to concerns expressed by many small commercial webcasters, and consistent with a request made by Congressmen Howard Berman (D-CA) and Howard Coble (R-NC), SoundExchange today began sending formal offers to qualified small webcasters that would allow them to continue operating through 2010 under essentially the same terms they have enjoyed under the Small Webcaster Settlement Act (SWSA). This offer means that qualified small commercial webcasters would be guaranteed the same rates through 2010 that they have received since 1998 for the use of sound recordings owned by SoundExchange members. Sound recordings of non-members would still be subject to the new rates.

Although webcasters large and small have begun paying under the new rates, and given that negotiations are ongoing, it had remained unclear to many small webcasters what their obligations would be going forward. "By providing each small webcaster with an agreement that extends the terms of the Small Webcaster Settlement Act, it takes the uncertainty out of the air as to most of their programming, and lets them continue streaming," said John Simson, Executive Director of SoundExchange.

Qualified small commercial webcasters who sign the agreement will be able to stream sound recordings of any and all SoundExchange members at subsidized rates. SoundExchange represents more than 20,000 recording artists and 3,500 record labels, including all the major recording companies. As part of the agreement, small webcasters (defined as those earning $1.25 million or less in total revenues) would pay royalty fees of 10 or 12 percent of revenue. The proposal also includes a usage cap to ensure that this subsidy is used only by webcasters of a certain size who are forming or strengthening their businesses.

Small webcasters would have until September 14, 2007 to accept the agreement. Small webcasters who do not sign the agreement, but continue streaming, will be responsible for paying the new rates first announced by the Copyright Royalty Judges (CRJs) in March, the first payment of which was due July 15, 2007.

Several small webcasters not party to ongoing negotiations have been asking for the opportunity to enter agreements based on SoundExchange's offer of May 22, and SoundExchange is responding to those requests by sending agreements directly to small webcasters. "In the wake of our earlier announcement regarding ongoing negotiations, too many small webcasters were living with uncertainty about their status. Since most of them are not involved in the negotiations, we wanted to make sure that all small commercial webcasters could receive the benefit of our offer. It seems only fair," said Michael Huppe, General Counsel of SoundExchange.

While SoundExchange can extend this offer only on behalf of its members, SoundExchange ultimately hopes for an industry-wide resolution that would have to be implemented by the Copyright Royalty Judges. "We continue to negotiate with the relevant parties, and are hopeful that we can reach a solution that works for all small commercial webcasters. Of course, such a solution would need to be submitted and approved by the judges in order to apply industry-wide," noted Huppe.

Representatives Berman and Coble and the House Judiciary Committee encouraged SoundExchange to pursue extension of the provisions of the Small Webcaster Settlement Act. "Representatives Berman and Coble believed that extending to 2010 the terms that small webcasters had from 1998 through 2005 was a reasonable way to give them some business certainty as they grow their services, and so we acted," added Simson. "These rates, however, mean no increase in royalty payments to artists and labels over 13 years."

Simson emphasized that, "Even while substantial progress has been made on all of the issues of concern with respect to the CRJs' decision on webcasting, we cannot forget that Congress granted webcasters and others unfettered access to music -- they can play it whenever they want without permission -- and all they have to do in return is pay a fair royalty."

   For additional information please visit www.soundexchange.com    CONTACT: Richard Ades or            Gregg Perry            202-640-5894            News@soundexchange.com  

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Source: SoundExchange

CONTACT: Richard Ades or Gregg Perry of SoundExchange, +1-202-640-5894,
News@soundexchange.com

Web Site: http://www.soundexchange.com/

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Profile: International Entertainment