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CARP Establishes Rate To Stream
By Eric de Fontenay (Founder & Publisher)
(more articles from this author)
2002-02-21
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Music Industry News - as it happens
Source: Mi2N - February 21, 2002

The Copyright Arbitration Royalty Panel (CARP) released its recommendations for rates and terms that would apply to webcasters, commercial and non-commercial radio broadcasters, and businesses performing sound recordings publicly.

The license rates and terms apply to certain eligible nonsubscription services to perform sound recordings publicly by means of digital audio transmissions as well as a license for the transmitting organization to make an ephemeral recording used to in the public performance.

RIAA CEO Hilary Rosen appeared satisfied with the rates proposed. "We would have preferred a higher rate. But in setting a rate that is about 10 times that proposed by the webcasters, the panel clearly concluded that the webcasters' proposal was unreasonably low and not credible." The RIAA filed a petition to convene a Copyright Arbitration Royalty in 1999 after its inability to voluntarily negotiate and reach an agreement.

As might be expected, radio broadcasters gave the proposal a chilling reception as evident by a National Association of Broadcasters statement: "The ruling from the Copyright Arbitration Royalty Panel may have the effect of unintended consequences, in that many radio broadcasters may reevaluate their streaming strategies. If the powerful record company interests' goal was to strangle a fledgling new service to radio listeners, it may have succeeded beyond its own expectations."

The Arbitration Panel will release the entire CARP Report on the Copyright Office on February 25.

Type of DMCA-Compliant Service Performance Fee (per performance) Ephemeral Fee
Webcasters & Commercial Broadcasters

* AM/FM simulcast over the Internet

0.07

9% of performance fee

All other transmissions

0.14

9% of performance fee

Non-Commercial Broadcasters

* AM/FM simulcast over the Internet

0.02

9% of performance fee

Other internet transmissions

0.05

9% of performance fee

Transmissions on other channels

0.14

9% of performance fee

Business Establishments

Digital broadcast of sound recording

Statutorily exempt

10% of gross proceeds

Minimum Fee

$500 per year per license

Related News from Mi2N:
» Copyright Arbitration Royalty Panel Delivers Report
» Hilary Rosen On CARP Royalty Decision


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