Noncommercial webcasters are often forgotten in the discussion of the current proceeding to set Internet radio sound recording royalties. But, along with the royalties for commercial webcasters (we wrote about the proposed commercial rates here), the current Copyright Royalty Board proceeding will also set the rates for noncommercial webcasters. Various proposals for noncommercial royalties have been submitted to the Judges. In fact, one proposed settlement agreement between SoundExchange and CBI (a group that represents college radio stations) has been submitted to the Judges, and last week that proposed settlement was published in the Federal Register, with a request for comments by November 26. There are other proposals for noncommercial rates that were submitted by other parties, and we talk about those below.
Setting rates for noncommercial webcasters is not easy. Colleges and other schools, public radio and religious organizations usually are not motivated by the kinds of commercial considerations that give rise to evidence submitted under the “willing buyer willing seller” standard applicable to all CRB webcasting royalty decisions. Thus, the noncommercial rates are often set as an afterthought. In fact, perhaps because noncommercial rates have been such an afterthought, it has been these rates that have led to the greatest number of appellate issues for the CRB. The decision on noncommercial rates from the 2006 proceeding was just issued by the Judges after an appellate court remand. In that decision, the Board upheld the decision from the 2006 case setting the minimum fee for noncommercial broadcasters at $500 for the 2006-2010 proceeding – a decision reached after a remand of the case from the Court of Appeals to the Board following an appeal by IBS, another group of noncommercial broadcasters associated with colleges and other schools. But let’s look at the proposals for the upcoming case, and compare them to the rates currently in effect.
Continue Reading Noncommercial Webcasters Royalty Rate Proposals for 2016-2020