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Streaming Royalty Rates

Labels, Webcasters Fail to Reach Agreement on Streaming Royalty Rates

Authored by Mark Hefflinger on July 8, 2005 - 2:40am.
Washington -- Record labels negotiating with webcasters on updated royalty rates for the rights stream music online have failed to reach an agreement during a "voluntary negotiation period," Radio and Internet Newsletter reported. SoundExchange, the recording industry entity set up to collect and distribute digital royalties, noted that "settlement discussions are ongoing." The current rates were set only after bitter debate and a flawed royalty arbitration that spurred an overhaul of the entire process, resulting in the creation of a panel of Copyright Royalty Judges. Should negotiations between labels and webcasters break down, the two sides will submit statements of evidence for a "settlement conference"; should that conference fail to produce a settlement, the Copyright Royalty Judges will then hold their own hearings and independently set royalty rates for webcasters.
tags: Labels | Webcasters | Fail | Reach Agreement | Streaming Royalty Rates |