Broadcasters Appeal Royalty Ruling

tanveer1979 pointed out this story, but his summary of it wasn't much good. :) According to Reuters and Kurthanson.com, broadcasters (regular radio stations, not webcasters) are appealing a year-old ruling which would require them to make the same royalty payments for webcasting that webcast-only stations have to make. They're arguing that Congress intended the royalty payments to apply only to internet services which allow one to pick what music one receives - if the listener is force-fed a stream, like regular radio, Congress didn't intend for the royalty payments to apply.

Comments

No, the NAB wants special treatment for radio

[Animats]

The National Association of Broadcasters is asking for special treatment for Internet transmissions by "FCC-licensed broadcast stations". In the NAB's words:

• Summary of Argument:
  AM/FM streaming -- the Internet transmission by an FCC-licensed radio broadcaster of the program fare offered by such broadcaster pursuant to its FCC license -- constitutes a "nonsubscription broadcast transmission" within the meaning of Section 114(d)(1)(A) of the Copyright Act, and thereby is exempt from the limited performance right in sound recordings conferred by Section 106(6) of the Act.

  ...

  While there is thus no need to resort to legislative history, that legislative history nevertheless confirms the plain language construction of the "nonsubscription broadcast transmission" exemption, and demonstrates that Congress did not intend to impose sound recording public performance copyright liability upon FCC-licensed terrestrial broadcasters that simultaneously stream their radio programming to listeners via the Internet.

So the NAB does want a special deal for FCC-licensed radio broadcasters. Internet-only webcasters would not benefit from this deal. Nor will they benefit if the NAB wins this lawsuit. Read the filing.