[Ucrn] [Fwd: [CBI] Update on SoundExchange Royalty Fees - Joint message from NPR and CPB]

[Elizabeth Robinson]

NFCB has sent out the exact same text!  E.

Sandra Wasson wrote:
> I am forwarding this to you from the CBI list. Very informative.
>
> Sandra
>
>
>
> ------------------------------------------------------------------------
>
> Re: Update on SoundExchange Royalty Fees – Joint message from NPR and CPB
>
>
>
> Dear Colleagues,
>
>
>
> As you know, the music that public radio stations use on air and over
> the Internet typically requires licenses from the different copyright
> owners and payments of copyright fees.
>
>
>
> Record labels are represented by the RIAA (The Recording Industry
> Association of America).  RIAA in turn uses the non-profit SoundExchange
> to negotiate streaming rights with webcasters (including public radio
> stations).  If parties are unable to reach an agreement through
> negotiation, an independent administrative tribunal called the Copyright
> Royalty Board (“CRB”) has the power to mandate a rate that covers
> Internet streaming.  As we advised you last year, the agreement that we
> had to cover public radio’s web streaming expired at the end of 2004.
>
>
> Since then, CPB and NPR have been in negotiations with SoundExchange for
> a license to stream. When we were unable to reach an agreement, the
> issue of our license fee was referred to the CRB.  The CRB issued a
> decision that set a rate structure that we believe was very unfavorable
> to public radio and failed to account for the noncommercial, public
> service nature of our music streaming. We have appealed the CRB decision
> to the U. S. Court of Appeals for the District of Columbia.  The
> appellate review will take a considerable amount of time, probably a
> year and half, perhaps more.
>
>
>
> The CRB decision included a requirement that back fees be paid by July
> 15, 2007.  We made a motion for a stay in the royalties fees but
> yesterday the U.S. Court of Appeals denied that motion.  While we were
> disappointed in that decision, we were not surprised.  There was a slim
> chance the stay would be approved but it was worth venturing.
>
>
> Meanwhile, NPR and CPB continue to negotiate with SoundExchange in the
> hope of achieving a system-wide settlement that recognizes the special
> noncommercial, public service nature of public broadcasting.  Thus far
> we have been unable to reach an agreement.  Our next discussion is
> scheduled for this Friday.
>
>
>
> Because of conflicting provisions in various statutes and regulations,
> there is some confusion about what payment is actually due on July 15^th
> .  CPB and NPR believe that only base fees for 2007 are required to be
> paid on July 15^th .  We believe that fees for 2005 and 2006 are not
> payable while our appeal is pending.  To comply with this requirement,
> CPB will offer the Sound Exchange a payment tomorrow that we believe
> covers the base fees of public radio that are due for 2007.  You should
> seek your own outside counsel if you have concerns about what fees are
> due on July 15^th .
>
>
>
> We believe that our payment to satisfy the July 15^th obligation will
> signal to the SoundExchange our good faith and encourage them to
> consider compromises on the issues that separate us.  However, it is
> possible that Sound Exchange disagrees with our view of what is owed on
> July 15^th and seek payment for fees from 2006 and 2007.  In addition,
> SoundExchange may also pursue additional fees from the few stations that
> we believe exceed the usage cap included in the base fee.  As we have
> indicated previously, these fees are station obligations that CPB
> covered through the end of our previous agreement.  CPB cannot yet
> guarantee payment of additional fees given that the size of these fees
> is yet unknown.    If you have concerns about any of this, you should
> consult outside counsel or, if you are an NPR member, NPR for
> assistance.  Please note that CPB cannot provide legal advice to other
> parties, including stations.
>
>
>
> Thank you for your patience as we work through this complex and
> difficult situation.  We will keep you informed to the extent that
> confidential negotiations permit.  In the meantime, realizing that each
> station must reach its own conclusions, we believe that it is critical
> that the public radio system stand together at this time.  NPR
> recommends that stations not enter into individual agreements with
> SoundExchange.
>
>
>
> In addition, NPR continues to actively pursue a legislative strategy.
> The Internet Radio Equality Act has been introduced in both the House
> and Senate.
>
> At this moment, NPR is among about a dozen attendees representing the
> internet and music industries at a closed-door roundtable called by Rep.
> Edward Markey, in an attempt by the Hill to move the parties toward
> settlement.  NPR will update you on legislative developments as they
> occur.
>
>
>
> Bruce Theriault, SVP, Radio, CPB
>
> Dana Davis Rehm, SVP, Strategy & Partnerships, NPR
>
> *************************************************************************
> You are reading the CBI list. Why not pre-pay next years dues now! Visit
> the CBI site at http://www.askcbi.org.
>
> _______________________________________________
> Ucrn mailing list
> Ucrn at lists.kuci.org
> http://lists.kuci.org/mailman/listinfo/ucrn
>
>