The four settlement agreements between SoundExchange and different groups of webcasters were published in the Federal Register today, setting the dates by which Internet radio operators need to opt into the terms of certain of these deals by filing a Notice of Election with SoundExchange. The deals each have different opt in dates, so it
The Corporation for Public Broadcasting has entered into a settlement with SoundExchange extending their current agreement on Internet Radio royalties for "Public" radio stations through 2015. The previous deal, about which we wrote here, covered the period from 2006 to 2010. This new agreement picks up in 2011 and covers included stations through 2015. As in the previous deal, the new agreement has a payment by CPB to SoundExchange satisfying all royalties for all of the covered stations. This was the fourth agreement that was announced last week, about which we wrote here, although details of this deal had not previously been released. We have written about the other deals entered into under the Webcaster Settlement Act of 2009 ("WSA"), including the deals with Sirius XM (here) and with other noncommercial webcasters (here).
This agreement covers stations affiliated with NPR, American Public Media, Public Radio International, and the Public Radio Exchange. CPB will pay to SoundExchange $2,400,000 in five yearly installments, covering up to 490 public radio stations in the first year, and up to 10 additional stations per year thereafter (up to 530 in 2015). The fee is also subject to adjustment if all of the covered stations exceed certain listening levels. Those levels, and the required true-up for performances in excess of the caps, are set out below. However, the CPB payments for excess performances are limited to a total of $480,000 over the 5 year period of the Agreement:
Year Music ATH Cap Per Performance Rate
2011 279,500,000 $0.00057
2012 280,897,500 $0.00067
2013 282,301,988 $0.00073
2014 283,713,497 $0.00077
2015 285,132,065 $0.00083
The Corporation for Public Broadcasting and SoundExchange have reached an agreement on the Internet radio royalty rates applicable to stations funded by CPB. While the actual agreement has not yet been made public, a summary has been released. The deal will cover 450 public radio webcasters including CPB supported stations, NPR, NPR members, National Federation of Community Broadcasters members, American Public Media, the Public Radio Exchange, and Public Radio International stations. All are covered by a flat fee payment of $1.85 million – apparently covering the full 5 years of the current royalty period, 2006-2010. This deal is permitted as a result of the Webcaster Settlement Act (about which we wrote here), and will substitute for the rates decided by the Copyright Royalty Board back in 2007.
The deal also requires that NPR drop its appeal of the CRB’s 2007 decision which is currently pending before the US Court of Appeals in Washington DC (see summary here and here), though that appeal will continue on issues raised by the other parties to the case unless they, too, reach a settlement. CPB is also required to report to SoundExchange on the music used by its members. In some reports, the deal is described as being based on "consumption" of music, and implies that, if music use by covered stations increases, then the royalties will increase. It is not clear if this increase means that there will be an adjustment to the one time payment made by CPB, or if the increase will simply lead to adjustments in future royalty periods.