[rfu-automation] Fwd: [grc] Sound Exchange webstreaming agreement

[Andrew Ó Baoill]

FYI. We're not streaming at the moment, but this article (see bottom  
of email) gives some useful updates to the rates and requirements laid  
out in a new settlement between NAB and Sound Exchange. Sound Exchange  
is a copyright licensing agency set up by RIAA, to administer the  
performance copyright licenses required of online distributors.

In this mail I've also listed out the various copyright costs  
associated with webcasting. Note that this does not cover podcasting -  
additional fees would be needed for this, if it is actually possible  
to license such use. [SESAC are the only group I've seen podcast rates  
for so far.]

Under the NAB requirement, the minimum fee is $500 per year, and rates  
are set on a 'per user, per song' basis. The $500 rate is equivalent  
to about 3 users listening continuously.

Separately, the CPB (Corporation for Public Broadcasting) recently  
reached an agreement with Sound Exchange, whereby CPB will pay the  
license fees of public broadcasters, including members of NFCB  
(National Federation of Community Broadcasters) through 2010.
http://www.nfcb.org/webcasting_royalty_rates.jsp

NFCB membership would cost us about $200 a year.

Note that in both the NAB and NFCB settlements, the quid pro quo (in  
return for rates lower than those mandated by the copyright board) is  
that stations must provide detailed information to Sound Exchange  
about what tracks were distributed online, and how many listeners  
there were to each track.

There are separate licenses required for the songwriting rights  
element of copyright. These are available from BMI, ASCAP, etc. WRFU  
has licenses with ASCAP, BMI and SESAC for its over-the-air signal,  
but would need separate licenses with each, as well as with Sound  
Exchange, to cover any online streaming. [In the US, radio stations  
only need licenses for songwriting/composition copyright, for their  
over-the-air broadcast, but need both songwriting and performance  
licenses for internet distribution.]

For webcasting, ASCAP and BMI will cost a minimum of $300 a year each,  
with SESAC a minimum of $116 in 2009. Thus, streaming in 2010 would  
cost about an additional $950 (including NFCB membership), with  
streaming in additional years probably costing at least $1250 (not  
including NFCB membership), unless there's another CPB agreement with  
Sound Exchange (which isn't provided for in the settlement between CPB  
and Sound Exchange).

Perhaps more significantly, we would need to be able to provide  
detailed information about all tracks played on air, as well as  
linking that to listenership levels at each point in time, something  
that would require both additional software and an ongoing time  
commitment by WRFU volunteers/operators.

Andrew

References:
http://www.sesac.com/pdf/internet_ATH_2009.pdf
http://www.bmi.com/forms/licensing/newmedia/nfp.pdf
http://www.nfcb.org/membership/application.jsp
http://www.nfcb.org/membership/benefits.jsp
http://www.cpb.org/stations/musicrights/
http://www.nfcb.org/webcasting_royalty_rates.jsp
http://www.broadcastlawblog.com/archives/internet-radio-details-of-the-broadcaster-soundexchange-settlement-on-webcasting-royalties.html
http://www.ascap.com/weblicense/feecalculation.html

Begin forwarded message:

> From: Graham Rice <graham at grahamrice.com>
> Date: March 11, 2009 7:44:09 AM CDT
> To: grc at maillist.peak.org
> Subject: [grc] Sound Exchange webstreaming agreement
>
> There's a good summary of what stations need to do following the  
> recent NAB/Sound Exchange agreement on the excellent Broadcast Law  
> Blog. The deadline is 2 April.
>
> http://www.broadcastlawblog.com/archives/internet-radio-details-of-the-broadcaster-soundexchange-settlement-on-webcasting-royalties.html
>
> Note the Small Broadcaster Exemption discussed towards the end.
>
> Graham Rice
>
> -- 
> WJFF - The only Hydro-powered community radio station in the USA
> Serving the Catskills, North East Pennsylvania and the Upper  
> Delaware Valley Region
> http://www.wjffradio.org
>
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