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New Internet Radio Fees Raise Costs and Eyebrows

Released on = March 13, 2007, 8:45 am

Press Release Author = Rave Police Records/Ryan Harlin

Industry = Entertainment

Press Release Summary = New rules announced by the Copyright Royalty Board
overseeing US-based internet radio stations are causing many broadcasters and
musicians to vocalize their disapproval of the system.

Press Release Body = BURBANK, CA - Following the recent announcement by the U.S.
Copyright Royalty Board regarding the establishment of new internet radio royalty
fees and planned rate escalations through 2010, broadcasters and musicians alike are
scattering to find safe ways to continue doing business as usual. The new rules
authorize SoundExchange, a royalty fee collection agency created by the Recording
Industry Association of America, to collect fees for streaming online musical
content. These fees, coupled with SoundExchange\'s ability under law to collect
retroactively, are causing controversy across the internet radio community.

In Los Angeles, for bands like electronic duo Techno Squirrels, the new royalty
collection service is not being welcomed as one might expect. Techno Squirrels
member, Lisa Eriksson, explains. \"It seems like SoundExchange is counting on
musicians seeing dollars coming in and ignoring where those dollars are coming
from... but these dollars are coming from largely non-commercial and independent
streaming radio stations that have embraced our music and made our growth as a band
possible.\"

The music industry has undergone radical transformation since the year 2000. While
online music sharing technologies have cut into record industry profits, major
record labels have often taken a litigious approach to repairing the damage.
Critics charge collecting money from independent internet \"webcasters\" through
SoundExchange is the latest strategy by members of the Recording Industry
Association of America (RIAA), a trade group representing some of the biggest record
labels in the United States.

The problem for bands like the Techno Squirrels is that SoundExchange is not an
optional program. Unlike traditional radio collection agencies like ASCAP and BMI,
if a band declines to join SoundExchange it does nothing to stop SoundExchange from
collecting royalties on that band\'s behalf and withholding those royalties.

Though internet streaming radio is still a small niche market for early adopters,
many people are making their dissatisfaction with the new SoundExchange collection
rates well known across the internet. Independent broadcasters feel the new rates
would easily bankrupt even a modest webcaster. The rules are being seen as unfair
and extraordinary when compared to commercial radio stations. Ryan Harlin of Techno
Squirrels points out, \"They are not counting each play a song gets. They\'re
counting each person who hears the song. So if you have 500 people streaming your
radio station, they charge you for 500 plays. Under their system, the bigger your
station becomes the worst off you are!\"

Bands and webcasters alike have begun using the only exemption provided for by the
new rules. Under the rules, if a station and a band enter into a \"Statutory
Licensing Agreement\" SoundExchange is unable to collect royalties regardless of how
many times a song was played and how many people heard it. \"It sounds big and
legal,\" says Harlin, \"but something as simple as an email from the band to the
station authorizing them to play their music without cost will do.\"


Web Site = http://www.ravepolice.com

Contact Details = contact: Lisa Eriksson
Office Phone: 818-567-0313
Email: info@ravepolice.com
Rave Police Records
P.O. Box 202
Burbank, CA 91503
www.ravepolice.com

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