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Unhappy With New Net Radio Fees, Both Webcasters and Labels Appeal
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posted by justfred
on Thursday August 08, @08:48AM
from the new-currents-overwhelm-smooth-streams dept.
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Webcasters and record labels will ask a federal court to overturn a new royalty system imposed in June by the Librarian of Congress, both groups said on Wednesday. While the record labels, receiving around 50% of the royalties, complain that the new rates underpay artists, Webcasters fear the fees will force many net radio sites to shut down. The new royalty system asks Webcasters to pay .07 cents per song, per listener, for the right to play music online.
As net radio stations and record labels fight the fees in court, the Webcasters still will be required to pay the royalties set up by the federal process, beginning in September.
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The Recording Industry Association of America (RIAA) says it negotiated terms with dozens of Webcasters for rights to use music, and that federal regulators should have used those higher "market-based" prices as a guideline for the new rules.
"The Librarian's decision was based on a misguided reading of the record," RIAA CEO Hilary Rosen said. "The end result significantly undervalued music used by Internet radio companies."
Check out news.com for a full article.
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