Thursday, January 15, 2009

Public broadcasters agree to Web music royalties

By Associated Press

WASHINGTON (AP) -- The Corporation for Public Broadcasting and a group that collects royalties for artists and recording copyright owners said Thursday they've agreed on payment terms for streaming music online.

The agreement between CPB and SoundExchange establishes the royalties that will be paid on behalf of the public radio system for streaming sound recordings on a variety of public radio Web sites from Jan. 1, 2005, through Dec. 31, 2010.

The deal covers about 450 public radio Web sites including CPB-supported stations, National Public Radio, NPR members, National Federal of Community Broadcasters members, American Public Media, the Public Radio Exchange and Public Radio International.

SoundExchange, a nonprofit group that collects royalties for recording copyright owners and artists from Internet radio stations and other digital radio services, will receive a single upfront royalty payment of $1.85 million.

In addition, SoundExchange will receive consolidated usage and playlist reporting from CPB on behalf of the public radio system. That move is designed to improve the efficiency of the payment process, helping to ensure that performers and sound recording copyright owners are accurately paid, CPB and SoundExchange said in a combined statement.

NPR also has agreed to withdraw its appeal of a May 2007 Copyright Royalty Board royalty rate decision.

Both sides said the agreement reinforces the value of artist performances and recognizes the mission of public radio stations.

"This important agreement will ensure that the artists heard on public radio station Web sites will receive compensation and will enable public radio webcasters to continue to meet their public service, nonprofit missions," Pat Harrison, chief executive of CPB said in the statement.

SoundExchange director John Simson said the agreement broadens the landscape of music available to public radio. "SoundExchange's 35,000 artists and 4,000 plus labels look forward to our continued partnership with public radio," he said.

Kurt Hanson, who operates AccuRadio.com, a multichannel Internet radio station, said the deal appears to be reasonable. Hanson said he hopes other groups representing nonpublic Internet radio stations can reach fair royalty agreements with SoundExchange.

SoundExchange has said it is moving closer to a deal with big webcasters, including those represented by the Digital Media Association (DiMA), a trade group made up of companies that operate online audio and video services.

Traditional AM and FM broadcasters are currently exempt from copyright royalty rates for over-the-air radio play since -- under the logic of the current law -- that airplay is thought to provide free promotion for artists and labels. But the broadcasters are subject to the new rates for any songs streamed over radio station Web sites.

The National Association of Broadcasters, which represents those traditional stations, said it looks forward to sitting down with SoundExchange "to craft equitable streaming rates that enhance the online music experience and expose more artists to our listeners."

Copyright 2009 The Associated Press.