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SoundExchange Gives Webcasters A Break
By Eric de Fontenay (Founder & Publisher)
(more articles from this author)
2002-10-30
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Not so long ago, the recording industry and many, though not all, webcasters breathed a sigh of relief as they negotiated an agreement on rates to be applied to small webcasters. The agreement, enshrined in bill HR. 5469 which passed the House, would have allowed small webcasters to pay on a per-revenue basis instead of the per-performance rate ordered by the Librarian of Congress. Problem solved right? Not without the Senate which dropped the ball by failing to pass the bill before leaving for election campaigning.

Enter SoundExchange which administers the collection and distribution of webcasting royalties. The organization unveiled a 'temporary payment plan' which would waive the per-performance rate in effect starting October 20 for qualifying small webcasters. Instead, they would be required to pay the annual $500 annual minimum fee for each year of operation since 1998.

"Given the unfortunate fact that a lone Senator apparently held up the small webcasters' bill, we felt it appropriate to offer this proposal," explained SoundExchange Executive Director John Simson.

Although many webcasters are likely to balk at paying up to $2,500 by October 21st while the situation remains uncertain the Senate reconvenes, the alternative would have been a tragedy confirming webcasters and listeners worst fears. Considering that webcasters are not likely to get a better deal from Congress, SoundExchange's announcement is more than reasonable and provides webcasters with the breathing room to operate.

Related News from Mi2N:
» SoundExchange Announces Temporary Payment Plan While Congress Considers Small Webcaster Legislation


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