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UPDATE: July 19, 2007
 We know many of you are concerned about how the recent deadline of July 15th for webcasters to begin making payments to SoundExchange as the result of the March 2nd decision of the Copyright Royalty Board affects KEXP.
SoundExchange and Public Radio have agreed to continue negotiating. Public Radio is being represented by the Corporation for Public Broadcasting (CPB) and national Public Radio (NPR).
How does KEXP fit into all this? The affects of the CRB rate increase will have a significant impact on small and large webcasters as well as Public Radio stations like KEXP. As a member-station of NPR, KEXP’s royalty fees are negotiated, administered and paid by CPB.
According to a statement issued on Friday, July 13th from Andi Sporkin, NPR’s Vice President for Communications:
“NPR and CPB had a productive meeting today with SoundExchange. At the meeting, no agreement was reached on a substitute for the March 2 decision of the Copyright Royalty Board. CPB offered a payment to SoundExchange, that has been accepted, to cover what NPR and CPB believe is due July 15 as the base rate payment for stations beginning March 2, 2007. NPR and CPB are confident that public radio stations can continue their music streaming operations for the next three months as good faith discussions are ongoing about the structure and amount of the ultimate fee. At this time, public radio stations will continue music webcasting without limit to visitors to their webstreams or changes in their current operations.”
Please note if negotiations are not successful, public radio faces three significant issues:
- A royalty model with no distinction between non-commercial public service webcasters and for-profit webcasters
- Overwhelming reporting requirements
- Royalty rates several-fold higher than the most current rates
For more information, please review previous posts to this page below.
With thanks,
Tom Mara
Executive Director
For More Information
The decision by the CRB affects all public radio stations because it:
- Eliminates the distinction between noncommercial and commercial media
- Requires complicated record-keeping that will place an excessive burden on stations
- Penalizes public radio for fulfilling its statutorily-mandated mission of bringing new, culturally enriching programming to the American public
- Sets a chilling precedent for future rights discussions, negotiations and litigation that may undermine non-commercial public service programming
Tell Them Public Matters
www.tellthempublicmatters.org/radio.html
Save The Streams
www.savenetradio.org
RAIN: Radio and Internet Newsletter
www.kurthanson.com
Copyright Royalty Board
www.loc.gov/crb
Future of Music Coalition
www.futureofmusic.org
Save Net Radio
www.savenetradio.org
How can you help?
You can contact your representatives on Capitol Hill to alert them to this decision and its potential negative impact on your station and public radio. Use your zip code to search for contact info:
U.S. Senate
www.senate.gov
U.S. House of Representatives
www.house.gov
In addition to the points above, your message(s) to your representative(s) might include that public radio is asking for a reasonable solution to this issue, a solution that:
- respects the property rights of the artists and recording companies
- eliminates burdensome bureaucratic recordkeeping
- reduces costs of the CRB and SoundExchange (the industry recordkeeping agency)
- ensures that the public is served on the internet as it is served by public radio through broadcasting
Recent press:
May 2, 2007: The Seattle Times, "At KEXP, technology and music embrace" - read now
April 30, 2007: The Seattle Times, "Paradise to poverty: the fight for I-radio" - read now
April 27, 2007: Wired, "Interview: KEXP's Tom Mara on the Impending Internet Radio Royalty Rate Disaster" - read now
June 26, 2007
Facing the Music Royalty Hikes
Webcasters are participating in the June 26, 2007 “Day of Silence” to
protest the Copyright Royalty Board (CRB) decision regarding streaming
music royalties.
On July 15, the CRB decision becomes effective and brings an alarming
increase in music royalty fees, along with other burdens, to KEXP for
its streaming services. KEXP estimates a 6-figure increase in payments
in the next year.
To carry additional expense -- while we already devote our organization
to serving the music community -- will constrain our ability to pursue
our public service mission. KEXP's core mission of public service -- and
the nearly $4 million we raise from the community annually in pursuing
it -- is laser-focused on championing artists, their fans and supporting
labels as we serve our listeners.
Carrying this additional expense will likely require us to cut services
or let go of projects.
While we applaud the energy that our fellow webcasters are putting
towards affecting positive change via the “Day of Silence,” we
ultimately feel an obligation to our listeners to not pull away our
music services online from them. At the same time, we continue actively
participating in efforts to bring about a reasonable solution.
I encourage you to continue to learn more about the CRB decision as the
July 15th deadline to increase rates approaches. There are several
places online to keep informed on this issue, read press clippings, sign
petitions, send emails and contribute comments. Some of these places are
listed below.
With appreciation,
Tom Mara
Executive Director
KEXP-FM and KEXP.org
May 15, 2007
On Thursday, May 10th, The Internet Radio Equality Act (Senate Bill 1353), introduced by U.S. Senators Ron Wyden (D-OR) and Sam Brownback (R-KS), addresses mistakes and deficiencies of a March 2, 2007 decision by the Copyright Royalty Board that will dramatically increase the royalties payments owed to rights holders for the streaming of music offered on the internet.
This Senate Bill is nearly identical to Congressmen Jay Inslee (D WA 1st CD) and Don Manzullo, (R- ILL 16th CD), House Bill bill. The only difference is in the Transition Provision. Because both these bills would authorize new negotiations and, if negotiations fail, new Copyright Royalty Board proceedings, the proposal would also establish annual royalty levels for a transition period, set at 1.05 times (for the Senate Bill) and 1.5 times (for the House Bill) the annual royalties paid during the period ending December 31, 2004 (the last date on which the previous royalty agreements were in effect). This would provide copyright owners with a reasonable increase in royalty levels without causing the major disruptions that the CRB decision would have.
Here are current lists of sponsors:
http://thomas.loc.gov/cgi-bin/bdquery/z?d110:HR02060:@@@P - H.R. 2060
http://thomas.loc.gov/cgi-bin/bdquery/z?d110:SN01353:@@@P - S. 1353
April 30, 2007
An appeal went forth to the CRB last week. Unfortunately they rejected all requests by all parties to rehear aspects of its March 2nd decision. This means that changes to the Board’s decision can now only occur by appeal to the United States Court of Appeals for the District of Columbia or by congressional legislative action.
On Friday, April 27th, The Internet Radio Equality Act , introduced by Congressmen Jay Inslee (D – WA 1st CD) and Don Manzullo, (R- ILL 16th CD), addresses mistakes and deficiencies of a March 2, 2007 decision by the Copyright Royalty Board that will dramatically increase the royalties payments owed to rights holders for the streaming of music offered on the internet.
This bill asks Congress to reinforce its historic acknowledgement that public broadcasting has a place in the media landscape by modernizing section 118 of the Copyright Act for the 21st century. With Section 118, Congress recognized the Public Policy need to treat public broadcasting separately. Section 118 encourages the owners of copyrights and public broadcasters to reach negotiated agreements on royalty levels, and such agreements have been the pattern in the 30-year history of the provision. The CRB Board would not consider the public service aspect of more than 800 stations across the country when it made its recent decision. Since 1976, when Congress enacted Section 118, public radio has been recognized for its unique mission and distinctive, diverse programming options. Congress recognized that public radio has a very different mission from commercial media and should not pay commercial-level royalty rates. This bill will provide a long term resolution that is fair for all sides.
April 6, 2007
Many listeners are contacting us with concerns and questions about how the recent Copyright Royalty Board (CRB) decision to increase music streaming royalty rates may affect KEXP.
The appeals process has begun. We hope the parties involved will all realize the significant role non-commercial radio plays in connecting emerging artists to their first audiences, and maintaining the connection between music lovers and heritage artists. KEXP's core mission of public service -- and the nearly $4 million we raise from the community annually in pursuing it -- is laser-focused on championing artists, their fans and supporting labels as we serve our listeners. That's what KEXP does.
Like most organizations, we sit down every year to forge a plan for the coming year and to determine what we can afford to accomplish. Carrying this additional expense will likely require us to cut services or let go of projects.
To carry additional expense -- while we already devote our organization to serving the music community -- will constrain our ability to pursue our public service mission.
Below are some resources to learn more about this issue, including information from National Public Radio.
I encourage you to learn more about the CRB and the development of music royalties. In addition to updates from KEXP, there are several places online where you can keep yourself informed on this issue, read press clippings, sign petitions, send emails and contribute comments. Some of these places are listed below.
With appreciation,
Tom Mara
Executive Director
KEXP-FM and KEXP.org
From National Public Radio:
On Friday, March 2, 2007, the Copyright Royalty Board (CRB) released a decision that will dramatically increase the royalties payments owed to rights holders to stream sound recordings of music offered on the internet. This includes public radio websites. Responding to requests from several parties (including NPR, representing public radio), the Board then granted a rehearing on this issue, with written arguments due on April 2.
The decision by the CRB affects all public radio stations because it:
- Eliminates the distinction between noncommercial and commercial media
- Requires complicated record-keeping that will place a huge burden on stations
- Penalizes public radio for fulfilling its statutorily-mandated mission of bringing new, culturally enriching programming to the American public
- Sets a chilling precedent for future rights discussions, negotiations and litigation that may undermine non-commercial public service programming
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