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Webcasters Blanket Congress With Letters Regarding Royalty Rates
RealNetworks Chairman/CEO Rob Glaser, Yahoo founder Jerry Yang, Live365 Chairman/CEO Mark Lam and Pandora President/CEO Joe Kennedy have sent a letter to every member of Congress asking them to take another look at the increased webcast royalty rates set by the Copyright Royalty Board in March.
The CRB raised the per-performance fee to be paid by webcasters to .08 cents in 2006, .11 cents in 2007, .14 cents in 2008, .18 cents in 2009 and .19 cents in 2010, with a minimum annual fee of $500 per streamed channel. The new rates are set to become effective on July 15, with retroactive royalties for 2006 due immediately.
In their letter, the executives say that the CRB ruling "shocked the industry and neutral analysts.” They further claim that the new royalty rate “will cause immediate bankruptcy of the majority of the Internet radio industry when it becomes effective July 15, and will actually reduce royalties to record companies and artists as services go dark and royalties are never paid."
The quartet asks Congress to act before July 15th, saying, "We ask you for your help to restore balance and fairness so that this new industry can survive and continue to pay artists reasonable royalties."
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