SoundExchange Extends Olive Branch To Small Net Radio Stations
SoundExchange has extended an Olive Branch to small Internet radio stations by offering to stretch the Small Webcaster Settlement Act (SWSA) until 2010. As you read here before, on May 1 the Copyright Royalty Board (CRB) declared that effective July 15, it will more than double the royalties of Internet radio stations. This in turn became a call to arms for the well-connect online radio community who swiftly responded with their own lobbying efforts.
The extension of the SWSA, which was first introduced in 2002, sets below-market royalty rates for small Internet radio stations in order to give them time to build their business. The SoundExchange offer came as pressure mounted from a concerted public relations campaign and lobbying effort by such groups as SaveNetRadio.org, as well as the drafting of a new bill, co-signed by Representatives Howard L. Berman and Howard Coble, that would eliminate the rate hike.
John Simson, executive director of SoundExchange has been quoted as stating: “Although the rates revised by the CRB are fair and based on the value of music in the marketplace, there’s a sense in the music community and in Congress that small webcasters need more time to develop their business.” A major back-peddle by the trade organizaion. “We look at it as artists and labels doing their part to help small operators get a stronger foothold.”
This extention would only be granted to small online stations who register with the copyright office, comply with reporting to SoundExchange, and pay any royalties that are currently owed.