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DiMA Responds To SoundExchange Press Release
By Mi2N
(more articles from this author)
2007-07-17
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DiMA would agree to a $2,500 per-service cap for the entire term of the CRB ruling (through 2010), but not the partial-offer presented by SoundExchange.

SoundExchange issued a press release stating that the organization has proposed a voluntary cap on the minimum fees charged against royalties for sound recordings played on Internet Radio. According to the press release, SoundExchange proposed capping such advance payments at $2,500 per service.

Recently enacted regulations (due to go into effect on July 15) require each webcasting service to pay a $500 minimum fee "per station or channel" regardless of the overall number of stations/channels they are streaming.

Jonathan Potter, executive director of the Digital Media Association, issued the following statement:

"DiMA would agree to a $2,500 per-service cap for the entire term of the CRB ruling (through 2010), but not the partial-offer presented to us in writing, which would terminate in 2008.

”Any offer that doesn't cover the full term is simply a stay of execution for Internet radio. The looming 2009 billion-dollar threat is destabilizing and inhibits investment and growth. DiMA, like thousands of artists and millions of consumers, wants a solution that promotes long-term industry growth. A billion-dollar ‘minimum fee’ is equally absurd in 2006, 2007, 2008, 2009 or 2010. It should be eliminated – period.

“DiMA is disappointed to have to issue this statement; we would prefer to resume negotiating important issues directly with our counterparts rather than through press releases."

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