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U.S. Appeals Court Upholds Webcasting Royalties

reiggin writes "According to Cnet News.com, radio stations must pay copyright fees for the songs played over the internet. This upholds a previous decision of a lower court and the U.S. Copyright Office. Cary Sherman, the new RIAA president, is gleeful. Guess how the rest of us feel?"

51 comments

  1. The rest of you feel... by Dancin_Santa · · Score: 0, Flamebait

    I bet you feel like your ability to illegally trade music by broadcasting it without paying royalties has not been hampered by this last ruling.

    I bet you feel that you will continue doing it from now and into the future because arguments like "you support the artist not the RIAA" and "music trading increases sales" are good enough to salve your mind.

    1. Re:The rest of you feel... by Anonymous Coward · · Score: 0

      Wow, some one willing to speak their mind up against this community of "free music" geeks. Good thing I friended you.

    2. Re:The rest of you feel... by NiceGeek · · Score: 1

      Ok, DS, do you even understand the issue? Basically the labels are double-dipping. We're talking about radio stations that *already* broadcast this music over the airwaves.

    3. Re:The rest of you feel... by Anonymous Coward · · Score: 0

      ASCAP and BMI do not represent the labels.

      By rebroadcasting outside of their FCC-regulated area, these "internet radio" stations are essentially pirate radio stations and can be pursued in court for ASCAP and BMI fees.

    4. Re:The rest of you feel... by Anonymous Coward · · Score: 0

      The whole concept of intellectual property is bogus, but the music "industry" are the real thieves and freeloaders. They brain wash you into thinking that their latest artist is the greatest, they make the artist play what the industry execs think they should play (fuck what the artist wants or thinks), then they charge the consumer an astronomical price for a piece of plastic worth a few cents; then they fix it so the artist is in permanent debt to them, they keep the artist's work AND the artist's money. This is equity? People like you who support the music indusrty while they steal your money are morons, what more is there to say?

    5. Re:The rest of you feel... by Snowspinner · · Score: 1

      Actually, no, I feel like this is another blow for those who see intellectual property as the artificially created sham it is.

      I mean, let's stop for a moment and play "let's pretend". Today, we'll pretend that there's a guy in California with an acoustic guitar. He writes a song. He uses a particular hook in it. He's a poor college student, so, having written this song, he puts it in a notebook and plays it occasionally when he's in his room fiddling on the guitar.

      Two years later, some folks in New York are working on the next J. Lo album, and use that same hook. They put out their record.

      Now, since poor guy in California has no notarized version of his song, hasn't played it live, hasn't recorded it, etc, he no longer owns that hook. In fact, if he keeps using this bit of intellectual property that he invented, he can be sued.

      And don't give me crap about how he should have notarized it. You don't really believe a college student should have to go notarize every fucking song and poem they write. The problem here is simpler than that.

      Unlike a physical object, which by necessity only exists in one place at a time, and can only be created once, intellectual property can transmit without labor, independently generate in multiple places, and all sorts of other things.

      It's not property. It cannot rationally be property. And it needs to stop being given the legal status of property.

    6. Re:The rest of you feel... by reiggin · · Score: 1
      And don't give me crap about how he should have notarized it. You don't really believe a college student should have to go notarize every fucking song and poem they write. The problem here is simpler than that.
      Actually, the solution here, for the poor college student, is simpler than that.

      You don't have to have something notarized to make it copyrighted. Just mail it to yourself. A US Post Office postmark serves as a legal seal saying "I wrote this on this date." It's an old songwriters' means of copyrighting material.

      I know this doesn't invalidate your point (in fact, I agree with everything else you say) but it's still something useful that all aspiring independent artists need to know. Copyright your own work via the USPS and then sue the heck out of J.Lo or whoever many years later.

    7. Re:The rest of you feel... by Anonymous Coward · · Score: 0

      FYI...the RIAA is double-dipping for all internet broadcasts...not just those that have over-the-air equivalents.

      Everyone has to pay ASCAP/BMI/SESAC, internet broadcasts have to pay extra.

    8. Re:The rest of you feel... by Snowspinner · · Score: 1

      That's the thing. J.Lo is safe in this case, even if you do that, because it's really easy for J.Lo to prove she never heard your song.

      You, on the other hand, have no such protection. If you don't have the notarized version, you can get reamed.

      Because, fundamentally, copyright is going to favor the corporate artists with huge distribution over the small ones. Just because it's much, much easier to show a small artist heard a big artist's song than the other way around.

      Put another way, no human being on Earth can provide reasonable evidence that they've never heard Jenny From the Block. Lots of people can provide reasonable evidence that they've never heard some garage band.

  2. Lewl. by Anonymous Coward · · Score: 0

    I lewl at you all.

    -- The WIPO Avenger

  3. As long as it's not retroactive... by lightspawn · · Score: 3, Interesting

    Maybe it's a good thing. I hope this leads to stations broadcasting non-RIAA music, online and off. RIAA artists get enough exposure as it is.

    1. Re:As long as it's not retroactive... by Anonymous Coward · · Score: 0

      I agree. I've been running iRATE for aa little over a month, and I'm getting quite a good collection of music that I really like.

      I've always wanted to get away from pirate-2-pirate filesharing systems and packaged pop, but found it really hard to discover good non-RIAA music. this site was a great help..

      (posting a/c because this sounds like a tacky advert. I didn't intend it to sound that way, I just want other people to know there IS good music out there other than what the RIAA pushes.)

  4. If you're gonna post... by Anonymous Coward · · Score: 0

    ..at least have the decency to use your own name, Cary.

  5. Uh oh.....stannnnnd by, sailor..... by DesScorp · · Score: 0, Flamebait

    Your ass is about to be raw from the flames forthcoming. You've just dissed the brothers. I say brothers, because this is slashdot, and the sisters are few and far between, but I digress....

    I really must salute you for your honesty and courage, and I'll shed a tear for you as you get pounded down to -1 RIAA SHILL. You've violated one of the slashdot commandments.

    Thou shalt not get in the way of *insert easily copied data here* Wants To Be Free

    So down you go to Davy Jones locker, trusty sailor. Rest assured, most of the posters here will spit on your watery grave...

    Salute

    --
    Life is hard, and the world is cruel
    1. Re:Uh oh.....stannnnnd by, sailor..... by Anonymous Coward · · Score: 0

      Yeah, because after all, copyright law comes from god, not from congress, which means the people have no right to complain about it...

  6. What I don't get... by alphaseven · · Score: 2, Interesting
    What I don't get is, artists and record labels have been complaining for years how much it costs to get a song on the radio (Is it Pay for Play?).

    With all the money labels are paying to get songs on the radio, why would they be complaining about internet radio stations doing it for free?

    1. Re:What I don't get... by Pogue+Mahone · · Score: 1

      Simple. The internet stations in question don't play *that* kind of music.

      --
      Every bloody emperor has his hand up history's skirt [Peter Hammill/VdGG]
  7. Huh? by idiot900 · · Score: 2, Insightful

    As someone who was heavily involved in college radio for all of his undergraduate years, I cannot understand why the RIAA is demanding the payment of these silly royalties by radio stations who want to webcast. My alma mater spends tens of thousands of dollars each year toward radio station maintenance to advertise the RIAA's music at no cost to the RIAA. On top of this they pay things like ASCAP public performance fees. The webcast is of lower quality than the air signal (which is pretty crappy itself by the way), so from the RIAA's perspective it is clearly advertising and not a way for people to get bit-perfect copies of the music. And yet they want people to pay them for the right to advertise for them for free.

    The same record labels that demand these royalties will also happily send piles of promo CDs, related swag, free concert tickets, and on occasion an actual breathing representative to try and get college stations to play their albums.

    Seems strange to me, but maybe it's just because I'm young and idealistic...

    1. Re:Huh? by zangdesign · · Score: 1

      Perhaps it's time to get college radio to be independent of RIAA and start playing actual college bands. Let regular radio broadcast the big dollar bands, and have college radio broadcast someone who's actually from their demographic.

      Sorry, that's sounds harsher than I mean it to, but I thought the point of college radio was first to provide a venue for potential DJ's to practice their on-air skills and second as a venue for student enjoyment.

      The best thing to do would be to kick the RIAA representative straight out of the studio. There's about a million bands out there looking for airplay, that aren't signed with RIAA companies, who probably better match the students' needs.

      It's wierd to me that college radio is not more independent of studios, but then I'm old and idealistic ...

      --
      To celebrate the occasion of my 1000th post, I will post no more forever on Slashdot. Goodbye.
    2. Re:Huh? by asscroft · · Score: 1

      See, there are only a handful of broadcast stations. The RIAA can easily pay for play with these stations to control the music they promote. With the internet, there are potentially millions of stations. Without these ridiculous royalty requirements, these internet stations are able to play songs other than the 20 on the list of RIAA approved songs for this format for this week. The RIAA hates this, because it makes it harder to promote the artists they want to promote this week. Notice how the only time you hear something from an artists older stuff is when that same artist has a new album out this Tuesday? It's not helpful to this week's sales to promote some album that has already peaked years ago - unless it's by an artist whose new album is on sale this week.

      It's all about control, not fairness, not piracy, not IP. Control of the promotional arm of the music industy - Radio.

      And yes, it's total and utter bullshit.

      --
      because I have been enjoined by this Holy Office to abandon the false opinion which maintains that the Sun is the centre
    3. Re:Huh? by jdunlevy · · Score: 1
      Perhaps it's time to get college radio to be independent of RIAA and start playing actual college bands. Let regular radio broadcast the big dollar bands, and have college radio broadcast someone who's actually from their demographic.

      As the law is now, not playing RIAA material is not enough to get "college radio" -- or other "independent" and "community" stations -- out of still having to give money to the RIAA in the form of statutory license fee.

  8. who cares? by gyratedotorg · · Score: 1

    i know im gonna get modded as a troll for saying this, but seriously, who cares? ive looked through the riaa members list, and as far as im concerned, none of the "music" they own is worth a damn anyway. all of those labels produce the same recycled garbage. rather than complain that you cant hear the latest backstreet boys or britany spears single for free on the net, do a little research and do YOURSELF a favor by giving some of the indie labels a chance. ill even give you good place to start. support the REAL musicians!

    --
    Gyrate Dot Org - "Where high-tech meets low-life"
  9. This is how Radio Works by Syncdata · · Score: 2, Insightful

    #1: Radio station plays songs, which gain audience.
    #2: Radio station plays ads to recoup overhead, and make profit.
    #3: Record label gets some vague promise that it will have increased consumer awareness amongst consumers, thus increasing sales?
    No.
    #3 is actually: record labels get paid per song for producing the product that is garnering the audience, which is listening to the ads.
    I read a fine quote on /. recently, that Life is not all skittles and beer.

    --
    "Inattention makes clowns of us all" -Bean
    1. Re:This is how Radio Works by Anonymous Coward · · Score: 0

      Actually record companies often pay money to get their songs on the radio. There's a loophole in the payola law. They do it through a third party.

  10. Loophole? by IshanCaspian · · Score: 2, Interesting

    So can I just rip cd-quality audio off of a new cd, and then "broadcast" it to one of my friends so long as I pay a penny to the RIAA?

    --

    But there is another kind of evil that we must fear most... and that is the indifference of good men.
    1. Re:Loophole? by benjamindees · · Score: 1


      1) broadcast an encrypted stream at $0.01/hr/listener
      2) sell a DRM-enabled player for $99.95
      3) number of 'listeners' == number of players sold
      4) profit

      At 4 hrs/day/user, a $25 margin would keep the RIAA at bay for almost two years, just long enough to hype the stock and dump it before retiring to your beach home in some non-extradition-treaty country.

      --
      "I assumed blithely that there were no elves out there in the darkness"
    2. Re:Loophole? by Alsee · · Score: 1

      So can I just rip cd-quality audio off of a new cd, and then "broadcast" it to one of my friends so long as I pay a penny to the RIAA?

      The minimum fee was $500. Unless I am mistaken that minimum fee has been raised to $2000. You also have to comply with a truckload of restrictions and qualifications.

      The law is an oppressive burden driving actual internet radio stations out of existance. Good freaking luck trying to use it yourself.

      -

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
    3. Re:Loophole? by KanshuShintai · · Score: 1

      You could "broadcast" it to lots of your friends and then they could record copies for themselves under the audio home recording act and the RIAA couldn't say anything. On that note, could we get P2P labeled as a "broadcast/webcast" medium, so that for a relativly small webcast fee everyone could "record" whatever music they wanted to?

      Also on that note, what programs are there that will record streaming audio?

    4. Re:Loophole? by mad_dog3283 · · Score: 1

      Winamp does, if you use the disk writer plugin. Also you could just use a standard WAV recorder and set it to record whatever audio is being sent to the soundcard.

      --
      Reprise the theme song and roll the credits!
  11. I thought by dq5+studios · · Score: 1

    "We applaud the court's ruling, affirming our view of the law that artists and record companies should be fairly compensated for the use of their music on the Internet," said Cary Sherman, president of the Recording Industry Association of America.

    I thought that the webbroadcasters were appealing paying the RIAA in addition to the artists royalties.

  12. Sad Thing by wolverine1999 · · Score: 1

    The sad thing is that if you have an internet radio at live365.com, you have to pay a royalty fee, even if your music is not RIAA music...

  13. I don't get it by rixstep · · Score: 1

    I'm sorry, but I don't get it. The stations are in it for the money; if they want to commercialise the net, why shouldn't they pay?

    1. Re:I don't get it by mad_dog3283 · · Score: 1

      No offense, but that's an unfair generalization. Some broadcasters are only doing it as a hobby or to give their favorite artists some free exposure. The only way a station would make any money is if they played ads, which some do, but only to recoup bandwidth costs.

      --
      Reprise the theme song and roll the credits!
  14. Offshore Broadcasting by Blackknight · · Score: 1

    Hmmm, I predict that a lot of sites will move their sites overseas.

    Good thing this doesn't apply to European net stations.

    1. Re:Offshore Broadcasting by Caid+Raspa · · Score: 1
      Good thing this doesn't apply to European net stations.

      Several European countries have already killed their internet radio in a way similar to this. Here the radio companies had to pay per potential listener, and 'potential listener' was interpreted in court as the entire population, even if the server could handle a few hundred connections. Talk about clueless judges.

  15. why do you have a problem with this? by sir_cello · · Score: 1


    Why do you have a problem with this ? The copyright owners deserve to be rewarded. In fact, this is a good thing. We're talking about the Internet where webcasting can be carried out by mostly anyone (at least, the bar is lowered).

    This removes the overhead of a costly broadcasting station and probably makes it more possible for non-mainstream artists to have their content played (and remunerated). Certainly that's my experience with local AM/FM radio station: they play the independent labels rather than involving themselves in marketing pushes of bad music for commercial reasons.

    Let's take your proposition, though. The copyright owners get nothing. So this means that the funds collected by the webcaster for advertising and everything else (premium subscription?) go entirely to the webcaster, all because the webcast is using a copyright owners content. Sure, that sounds fair: webcast makes it all, copyright owner gets nothing. Great! That's really going to incentivize people to produce music, only to know that everyone else can rip it off without paying the owner.

    Are you paying your own bills or is mamma still doing it for you ? Get a grip.

    1. Re:why do you have a problem with this? by mad_dog3283 · · Score: 1

      Remember, it costs money to run an Internet radio station. Bandwidth isn't free. True, some webcasters are in it for profit, and they should have to pay royalties if they're going to profit off of someone else's work. However, those stations who run ads and have subscription services only to recoup bandwidth costs and the like should be exempt, or at least not charged as much.

      --
      Reprise the theme song and roll the credits!
  16. How I feel... by Tom7 · · Score: 1


    I feel like not listening to RIAA-feeding ratio stations. There is plenty of royalty-free music out there.

  17. copyright fees? by sdibb · · Score: 1

    I'm just wondering ... shouldn't that be 'licensing fees', not not 'copyright fees'? How are they going to legally enforce this anyway, or keep track of who is playing what, how much they owe them, etc, etc?

  18. True -- payola still happens by strudeau · · Score: 1
    Actually, radio stations receive a list of songs and associated payments for each song played from third parties that sit between record labels and the stations. Every time a station plays a song on that list they get paid by one of the third parties. I've heard that every large radio station has a bank account in the Caribean for hiding a lot of that money.


    See This ABC News story as an example of the many stories written on this topic.

  19. because the treatment of stations is inconsistent by rbird76 · · Score: 1

    I'm not certain (I haven't RTA) but I thought that the Internet radio stations were paying different rates for their airplay of songs than were conventional radio stations - the Internet stations were paying for each song almost as if it were being ripped to disc for each song while the conventional radio stations do not. Thus, Internet stations are charged a significant premium for broadcasting music relative to conventional radio. Since most radio stations are comparable quality to Internet radio stations (if the Internet stations aren't of worse sound quality), the ability to rip digital copies from either medium (directly, over the Internet or via the "audio in" from the radio) is not much different, and doesn't justify the difference in cost per song per listener. Internet radio stations should have to pay artists to play their music, but not more than conventional radio stations do.

    Ultimately, this decision (and its prosecution) appears to be the RIAA (on behalf of its members) standing up to defend themselves as the sole portal to music sales. By driving (non-RIAA-controlled) Internet radio out of the market, the RIAA can enforce its playlist rules and control what customers hear. This intent, even more than the (questionable) means used to enforce it, is what I (and perhaps others) object to.

  20. VoIP by sheddd · · Score: 1

    Lots've local businesses here do a radio-station in the background for 'on hold' music.

    If they're using VoIP (or their phone company is using TCP/IP somewhere between the callers) isn't this technically infringing?

    1. Re:VoIP by mad_dog3283 · · Score: 1

      I think that regardless of whether or not the phone company uses TCP/IP, the businesses who use FM radio as MOH (music on hold) still have to pay ASCAP fees, the same way a bar, store, or restaraunt has to if they play FM radio on the premises.

      --
      Reprise the theme song and roll the credits!
  21. Re:because the treatment of stations is inconsiste by mad_dog3283 · · Score: 1

    The RIAA's argument was that since an Internet radio station could theoretically broadcast to the entire world, whereas a terrestrial station is confined to a relatively small geographic area, Internet stations should have to pay a fee per listener.

    --
    Reprise the theme song and roll the credits!
  22. Transfer by ScrewMaster · · Score: 1

    One thing everyone should understand. This is all about the transfer of wealth. Massive quantities of it. In fact, pretty much the entirety of human endeavor since the advent of dough has been about taking something valuable out of one pocket and stuffing it into another, frequently without the stuffee's permission.

    Go back a few centuries, to (for the sake of example) the feudal period in Old England. If someone who had lots of money and property wanted more of the same, why he simply sent some of his heavies around to crack a few skulls and take some. Not to pick on England, since this practice was popular around much of the world at the time. Actually ... it still is.

    Then we got "civilized." It is no longer socially acceptable for large organizations (other than, of course, governments) to go around stealing things at will, much as they might feel entitled. We have "laws" intended to prevent such activities, and "punishments" for those that transgress. Thus, the maintaining the continuous flow of wealth from the pockets of the "have nots" into the pockets of the "already have way too much" became substantially more difficult. For many years, the best that could be done was to use a methodology known as "fraudulent advertising" to convince us to voluntarily transfer our hard-earned wealth to those big companies who wanted it. This was a highly effective approach in that a. it worked and b. we felt like we had a choice.

    But, as always, things change. The modern pagan warlord, uh, corporate executive can no longer just thump us on the heads with a battle axe and take our money. We've also gotten wise to "fraudulent advertising", which has slashed that avenue of revenue as well. So, what is a frantic tribal council, oops, Board of Directors to do?

    This bring us to the current state of affairs regarding "intellectual property." Realizing that their power over the masses was waning, our corporate masters came up with a novel idea, known as "intellectual property". This unique concept (largely unprecedented in human history) was remarkable in its simplicity and sinister purpose. The beauty of this scheme was that "IP" (the modern symbol of the Dark Side) enabled the corporations to land a new, even more powerful ally.

    That ally is the United States Federal Government, a massive organization theoretically "Of the People, By the People, and For the People." As it turns out, this popular belief was largely unfounded. This has not proven to be nearly as big a problem as originally expected, however, since the majority of Americans don't seem to care all that much.

    In any event, the corporate powers-that-be have successfully conscripted the Federal Government to aid in maintaining their hegemony. With the Feds now backing their play, these feudal chieftains, I mean, Chief Executive Officers have been empowered, once again, to bash in our heads and take our stuff.

    --
    The higher the technology, the sharper that two-edged sword.
  23. Good by poptones · · Score: 1
    Then the market is wide open for a competitor to live365 that WILL embrace and foster the market for truly independant media.

    The only sad part of this decision is that it still holds the door open for all those established broadcasters - like the god-whore Clear Channel - to webcast all the RIAA dreck they wish. and, given clear channel's power in the market, they'll have no problem negotiating a cherry deal with the RIAA while all the "little guys" continue to flounder.

    On the upside, that's the ideal environment for a dinos-vs-indi@s battle.

  24. World's longest troll? by poptones · · Score: 1
    Except they can't take our stuff. What they are "taking" is their stuff using the laws we have all lived by for decades. Those very same laws protect us from having these people do exactly what you describe - bash us on the heads (or not) and take "our" stuff. Warner Communications can no more compile my megabytes of very public usenet postings and publish them for their own profit than I can do so with Harry Potter.

    You're not going to find many people more anti-media than myself. I don't have pay TV, haven't bought a CD in years, don't rent movies at Blockbuster, rarely go to the theatre, and can barely even tolerate the public airwaves l0ong enough to enjoy Survivor or, on the odd chance it's not a repeat (or just lame) Late Night with David Letterman.

    In short, I don't support the old guard. Hell, I don't even get magazines shipped to my house or even click on CNN.com. But I likewise cannot tolerate this nonsensical parroting about how the old school publishers are stealing "our stuff." WIRED harped on this nonsense for years - how "they" were going to deprive "us" of "our culture" - and I disputed it then, just as now. You want culture? Write a goddamned book. Make some music. Take some photographs. Share them with the world.

    There's your culture.

    Stop listening to the talking heads in hollywood who tell you what to think and feel and desire. Stop letting corporations rule your daily thoughts - contrary to what those "anti-media" talking heads in the mainstream media are telling you, it's NOT impossible to tune them out. You DON'T have to throw up your hands and accept it - but you're not going to make a change by trying to defend your "right" to their cultural icons.

    If corporate publishers are able to "lock away your culture" what does that tell you about the values of your culture?

    You want culture? You have the power to redefine it. The time has come to put up or shut up.

  25. Re:World's most misguided response? by ScrewMaster · · Score: 1

    I think I was a little too subtle for you. I was referring to the RIAA mass-subpoena compaign, and the similar (only much worse) actions being taken by DirectTV towards purchasers of smart-card technology. These people are doing pretty much what I described, and are of much the same mindset as the old feudal lords. Who cares if people get hurt as long as I get what I want. And I might add that they have been able to do so only because they bought new law that allowed them to get away with it (i.e., the DMCA and similar rubbish.) And it's not just those two: the number of American corporations that are using the DMCA to abuse people and suppress competition is growing day-by-day. This has nothing to do with culture, or even enlightened capitalism, in fact it has to do with the utter lack of both.

    So you can call me a troll if you want but you might want to ask questions before shooting next time.

    --
    The higher the technology, the sharper that two-edged sword.
  26. World's weaseliest post... by poptones · · Score: 1
    I was referring to the RIAA mass-subpoena compaign, and the similar (only much worse) actions being taken by DirectTV towards purchasers of smart-card technology.

    In a thread about "U.S. Appeals court upholds webcasting royalties?"

    Uh huh. Apparently that "misguided response" bit was talking, then, about your very own post?

    You're welcome.

  27. Re:because the treatment of stations is inconsiste by 91degrees · · Score: 1

    the ability to rip digital copies from either medium (directly, over the Internet or via the "audio in" from the radio) is not much different, and doesn't justify the difference in cost per song per listener

    True, but most people who want to record music from the radio will do so by tape or minidisk, whereas most people who record from internet radio will record straight to disk. Cassette and MD already have a levy applied to compensate the rightsholders, whereas hard disks do not. Charging the broadcasters goes some way to filling this gap.

    Of course, it's a little inconsistent in that people who record from internet radio to minidisk pay twice, and those who record from broadcast radio to hard disk don't pay, but it does make it a little more balanced.

    The most significant complaint is that they levy a minimum charge. This has the effect of making it cheaper per listener for large stations than smaller stations. However, this is not a copyright issue, but a monopolies issue.