Date:         Fri, 13 Jul 2007 18:48:51 -0500
Reply-To:     Association for Recorded Sound Discussion List
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Sender:       Association for Recorded Sound Discussion List
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From:         Bob Olhsson <[log in to unmask]>
Subject:      Re: Urgent Message From SaveNetRadio
Comments: To: Association for Recorded Sound Discussion List <[log in to unmask]>
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-----Original Message-----
From Tom Fine: "... So there is a great monetary incentive for an artist not
to price themselves out of the 
market -- loss of royalties on the one hand and perhaps more importantly
loss of free 
promotion/audience-widening on the other..."

Not only an incentive but two different mechanisms for artists and
webcasters to achieve what each wants:


First off, the CRB rates are a mandatory cap and NOT a fixed rate that
anybody who is willing to negotiate has to pay. Webcasters who can prove
they can't afford that much won't have to pay it unless the members of
SoundExchange turn suicidal which seems highly unlikely. There is already a
two-tier rate being offered to assist small webcasters.

("SoundExchange is a nonprofit performance rights organization jointly
controlled by artists and sound recording copyright owners through an
18-member board of directors with nine artist representatives and nine
copyright owner representatives. We have been designated by the U.S.
Copyright Office to collect and distribute statutory royalties to sound
recording copyright owners and featured and nonfeatured artists. Our board
members and staff are dedicated to providing exceptional service and
advocacy for artists and copyright owners to ensure the fair compensation
for the use of copyrighted sound recordings.")


Second, every webcaster and every artist is perfectly free to make their own
deal. The statutory royalty cap ONLY comes into play when a webcaster
refuses to make an individual deal with an artist or their representative
such as their label or SoundExchange.


This whole issue has been seriously mischaracterized by the Digital Media
Association's PR campaign in an attempt to undermine the artist's
negotiating position. The Digital Media Association refused to negotiate
beginning several years ago forcing the CRB process and then continued to
stonewall SoundExchange until a few weeks ago when it became apparent that
Congress wasn't about to give them the lower royalty cap their lobbyists
were asking for. This royalty cap affects a webcaster's upside potential
profit which in turn affects a webcaster's stock or IPO value.

Bob Olhsson Audio Mastery, Nashville TN
Mastering, Audio for Picture, Mix Evaluation and Quality Control
Over 40 years making people sound better than they ever imagined!
615.385.8051 http://www.hyperback.com