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Unions on CARP
By Jon Newton, p2pnet.net
(more articles from this author)
2002-05-17
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Music Industry News - as it happens
Source: Mi2N - May 14, 2002

American Federation of Musicians (AFM) President, Tom Lee, already boasts that his organization is alongside AFTRA (American Federation of Television and Radio Artists) and the RIAA (Recording Industry Association of America) in supporting CARP.

Lee points out that CARP (Copyright Arbitration Royalty Panel) recently set the royalty rates retroactive to 1998 and, "In a decision reached on February 20, the CARP recommended that Webcasters be required to pay 14 one-hundredths of a cent (0.14, or $0.0014) per song streamed to each listener. Terrestrial radio stations will be required to pay one-half that amount when they stream their radio broadcasts on the Internet."

During a round-table convened by the Copyright Office on May 10, 2002 in Washington, DC, AFM and AFTRA further urged the Copyright Office to require webcasters to provide, "sufficient information to allow accurate, complete, and fair distributions of royalties to featured artists, session musicians, and session singers."

Speaking on behalf of both organizations, AFM spokeswoman Patricia Polach said under the statute, 50% of the license fees paid by webcasters would go to recording artists and that, "Recording artists need this income. Most of them patch together a living out of many small sources of income. If the webcasters do not provide sufficient information along with their royalty payments, we will be required to spend the royalties on efforts to identify the sound recordings webcasters have used so that the correct artists can get paid. As a result, there will be very little left to pay them."

"The small business webcasters are incredibly important," said AFM President Tom Lee, "especially in these days of radio ownership consolidation. But most recording artists never get rich. They too are small businesses, who must be paid if they are to continue to create."

Related News from Mi2N:
» Unions Speak Out For Artists In Copyright Office Roundtable


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