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Internet Radio's 'Second Chance' Bogging Down in House

An anonymous reader writes "Wired is reporting that the Internet Radio Equality Act is failing fast in the House, with negotiations breaking down over fair pricing for internet radio broadcasters. 'A legislative setback could make it harder to dislodge the new fees, which took effect last month after a federal appeals court refused to postpone the payment deadline. With the threat of congressional backlash fading, SoundExchange could find little incentive to budge from its current position ... SoundExchange has already proposed changes that could relieve small and custom-streaming sites from charges they could not possibly afford to pay, at least in the short term. Many expect a small-webcaster deal to be done by early September, when Congress goes back into session. But the deal on the table hasn't changed since SoundExchange extended an offer in May to charge them 10 percent of gross revenue under $250,000, or 12 percent of gross revenues over $250,000, with a revenue cap at $1.25 million.'" All very cushy for SoundExchange. Wired also points out that this is the same organization illegally lobbying for terrestrial radio royalties through 'third party' shell groups.

32 of 105 comments (clear)

  1. Oh REALLY? by ScrewMaster · · Score: 5, Funny

    Wired also points out that this is the same organization illegally lobbying for terrestrial radio royalties through 'third party' shell groups.

    Huh. Congress making deals with a known criminal organization. Who would have even thought that was possible?

    --
    The higher the technology, the sharper that two-edged sword.
  2. In a weird way, I hope that this fails by WindBourne · · Score: 5, Interesting

    Look, this issue is not going to go away unless either all musicans promise to go only through RIAA approved labels or the internet is killed. This is the time to take them on. Basically, musicians need to recognize that they have the opportunity to break free of the bonds that hold them. How? By getting paid directly by forming their own set of none-riaa labels. This monster price will force the network companies to no longer broadcast groups that support RIAA. That will of course cut the netplay to those groups/labels. Once they realize that this is hurting themselves, they will push for much lower prices. Hopefully, the network broadcasters AND their listeners will chose to let RIAA supported labels die.

    --
    I prefer the "u" in honour as it seems to be missing these days.
    1. Re:In a weird way, I hope that this fails by Mathinker · · Score: 3, Interesting

      Another advantage, if it fails, is that Americans, or at least those who will listen to Internet radio, will be be exposed to more international influences (since the vast majority of Internet radio stations will be run in other countries). Assuming, of course, that there won't be some legislation requiring filtering Internet radio from abroad.

    2. Re:In a weird way, I hope that this fails by couchslug · · Score: 3, Insightful

      "In a weird way, I hope that this fails"

      That isn't weird. I want to see the RIAA and anyone who supports them boycotted out of business. As long as these groups are able to make money they will survive.

      --
      "This post is an artistic work of fiction and falsehood. Only a fool would take anything posted here as fact."
    3. Re:In a weird way, I hope that this fails by MadJo · · Score: 4, Insightful

      The biggest problem is, that internet radio stations pay copyright fees to SoundExchange even if the artists have released their stuff under a creative commons licence. Or even if said artist is not associated with SoundExchange or the RIAA.
      (Article on the DailyKos on this subject)

      Which ever way you look at it, it's a lose-lose situation for internet radio, if the fees will go in effect.

    4. Re:In a weird way, I hope that this fails by bilabrin · · Score: 3, Interesting

      Yeah, I thought I remebered reading that. Okay, so now what we need is a station like Indie Airplay (all indie music) to get hurt by this (to establish standing) or for SoundExchange to go after them so that they get it into court for a challenge. Seriously, why should RIAA make $$$ off of someone elses product? This part is absurd and should be challenged.

    5. Re:In a weird way, I hope that this fails by Weezul · · Score: 2, Interesting

      Yes and no, you'd have a very stronge case for not paying them, but you'd need good lawyers if they sued you.. maybe SoundExchange vs. Magnatune.

      In fact this won't kill internet radio, just current protocols. Instead we'll see superior p2p protocols where stations broadcast only torrent files and mixing instructions.

      p2p radio has many advantages :
      - near zero bandwidth cost for broadcasters because listeners pay both directions
      - synchronous usage keeps bandwidth prices down
      - stations can learn/feed off one another more easily
      - time shifting and ripping music are easier
      etc.

      --
      The Christian religion has been and still is the principal enemy of moral progress in the world. -- Bertrand Russell
    6. Re:In a weird way, I hope that this fails by Volante3192 · · Score: 4, Informative

      I can't tell if you're being sarcastic or not, but this is going to assume not, and if I'm wrong, I apologize in advance.

      In New York City you can't eat any food with trans fatty acids, and in Chicago (which is probably more than 3 hours, but throwing it out here as an example), it gets tricky trying to get fois gras. And violent video games? Well, you can't play Manhunt 2...it was supposed to be released last month.

      And even if those aren't things you care about, well, it's only a matter of time before they attack something you do.

    7. Re:In a weird way, I hope that this fails by wirehead_rick · · Score: 3, Interesting

      And this is THE HEART of the issue.

      The RIAA will get paid anyways from artists who originally refuse to participate in their monopoly on entertainment. It is the only way for the RIAA to keep a stranglehold on their abusive business model. (BTW, it is the same tactic being used by the MPAA to keep regular Joes from making quality movies and independantly producing and distributing them via the Internet - HDCP technologies are not anti-pirate technologies - they are anti-competitive technologies)

      Why doesn't a US internet radio station just play non-RIAA affiliated music (artist approved free airplay) and not pay a single dime for the music played? Then challenge any legal action that may be brought against them? Take it all the way to the Supreme Court if necessary.

      It would probably be overall cheaper then the freakin' fees anyways. If this law properly challenged as being anti-competitve/monopolistic maybe the courst can wipe it off the books.

      --
      -- Mean People Suck
    8. Re:In a weird way, I hope that this fails by asdfghjklqwertyuiop · · Score: 2, Insightful

      I think you and the site you link to misunderstands the meaning of the term "compulsory license". It isn't compulsory for the radio station, it is compulsory for the artist. Meaning the artist has no choice but to grant a license through SoundExchange. However the artist can grant other licenses and the radio station is free to accept or reject any of them. The compulsory license isn't compulsory for the licensor to accept, it is compulsory for the artists to grant. If artist and licensor can agree upon some license directly with each other, soundexchange is irrelevant and gets nothing.

  3. Cause and Effect by Bucc5062 · · Score: 3, Interesting

    FTA:

    "Whether or not SoundExchange's lobbying efforts prove to be illegal, its presence as an advocate in this debate undercuts its role as neutral administrator of royalty fees set and approved by the Copyright Royalty Board."

    The summary makes a *statement* that SoundExchange committed an illegal act. The article is less adamant concluding the SoundExchange should 'do the right thing'.

    Huh?

    Okay, this is slahsdot and summaries are not always concise about the cited article, but I would feel that given a case of braking the law, the Law, be that the US Attorneys General, a member of congress, or some other representative of the Law would take action. I personally feel that what is happening to online music is disgusting and agree that artists over time need to use the internet to get closer to their fans and potential audiences. That will not happen if bodies that control the money are not held accountable when they stray from the law.

    Did they? Did they not?

    It would seem, since no one is being taken to court on an illegal act, that they did not. That it were a civil issue why are music stations not suing for redress. Herer's a thought, if Wired thinks SoundExchange is breaking the law, report them to the law. Is that not what we do if we see a crime taking place? A lady is breaking into a car as I watch. I go over and ask, is this your car? "Um, I do own a car and this is a nice car" is the reply. I am suspicious so I what?

    Write an article on how wrong it is to steal cars citing this lady as prime suspect...

    or

    report her ass to the law and let them figure it out.

    For crying out loud...maybe journalism cannot file the report and instead they use the power of the pen to bring the issue to light. But if NO ONE takes action, either report on that (and ask why) or walk into a DA's office and demand that they be investigated.

    (sigh)...I think I may make my sig "I hear the fiddle in the distance, and it is getting closer".

    --
    Life is a great ride, the vehicle doesn't matter
    1. Re:Cause and Effect by morgan_greywolf · · Score: 4, Insightful

      It would seem, since no one is being taken to court on an illegal act, that they did not. That it were a civil issue why are music stations not suing for redress. Herer's a thought, if Wired thinks SoundExchange is breaking the law, report them to the law. Is that not what we do if we see a crime taking place?


      It's not that simple. If SoundExchange is violating the law, it is probably a civil matter and not a criminal matter. Law enforcement doesn't do anything and is not responsible for enforcing civil law, only criminal law.

      If they are violating civil law, well, as for why music stations aren't suing...well, people with a legitimate legal beef don't always sue. There are plenty of reasons why they don't.

      Look at this way: Microsoft violated the law with its Windows licensing scheme, right? I mean, a federal circuit court judge even said so, right? So why didn't the OEMs, who were harmed by this illegal licensing scheme, sue Microsoft? Mostly economic reasons. They didn't want to fight Microsoft's army of lawyers, sure, but they also didn't want Microsoft to cut them off from Windows and Office licenses.

      I suspect there are similar reasons why music stations aren't suing SoundExchange.

  4. Someone should point it out to Congress by Opportunist · · Score: 5, Insightful

    People listening to internet radio will not simply stop to do that and turn back to old fashion radio if internet radio is being made impossible in the US. Rather, they'll tune in to other stations abroad. With internet radio, this is hardly a problem.

    The difference is that this makes it quite a bit harder for Congress (or any organisation within the US) to take influence in the broadcast and avoid or at least monitor less desired broadcasts to happen. I mean, think of the propaganda ability of a net based radio that plays what its listeners want to hear. All you have to do is call your spin news and broadcast it once an hour, and between those news, just broadcast the latest and greatest hits.

    Now imagine this radio station somewhere in the middle east.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  5. as if by thatskinnyguy · · Score: 2

    As if the U.S. Congress, arguably the most powerful legislative body in the world, didn't have enough stuff to do, now they're actually hearing the whining from the MAFIAA! Only in America my friends...

    --
    The game.
  6. Re:eMusic by Opportunist · · Score: 2, Informative

    I don't know if that was such a good idea. You know that this is how the RIAA started, yes? As the royalty-collector for artists.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  7. I believe there is a way around this. by WindBourne · · Score: 2, Interesting

    Create a "label" company that the artists get stock in. Then have the streamcasters that are using the OSS, none RIAA stuff give up 1 share of their stock to said company. As such, the "label" company has the right to allow their music to be played since it is part of their company. I have seen several ppl here say that would not work, but I think that it will. In particular, since when do the feds require payments to self from a company that is owned by self? I believe that the only reason why money flows is for tax reasons, not copyright issues. The trick is to get the artists and streamcasters together.

    --
    I prefer the "u" in honour as it seems to be missing these days.
  8. 10 percent of gross revenue under $250,000 by razpones · · Score: 3, Interesting

    So if I happened to have an internet radio station that does not make any money, then 10% is 0, correct?, now, what if am an artist and I broadcast my own music on this station, do I have to pay this people to transmit my own work?, that sounds like MAFIAA tactics to me.

    1. Re:10 percent of gross revenue under $250,000 by TheRaven64 · · Score: 2, Interesting

      You could probably get around this by having your radio station exist as a wholly-owned subsidiary of another company. This company receives donations, sells mechanise, and maintains the infrastructure. The net radio subsidiary makes no money (gross) and posts a loss every year.

      --
      I am TheRaven on Soylent News
  9. And yet by WindBourne · · Score: 3, Interesting

    just about everybody says that. The funny thing is that America is bigger than EU, and most Americans have traveled through the states. Yet in EU, most citizens have NOT traveled beyond their own border (which equal to a small or medium size state here.), and a number have never left their own city. The same is true of just about every other country in the world. Overall, you will find that ppl do not travel because they do not have to, and/or do not have a desire to. The saddest part is when I hear ppl think that all the states are the same just because we speak the same language (which we do not). Nearly all westerners look at the east coast as being just as foreign as any country in EU. In fact, I have an easier time understanding a limey then I do somebody from the bronx, most places of new jersey, and even boston (pak it he == park it here). And the difference between Colorado and California is similar. Now, go to countries where they have not cultural issues, but are on different languages(which is the majority of the large countries; EU, India, China). How much do you learn about each other? Very little unless you make an effort to do so.

    --
    I prefer the "u" in honour as it seems to be missing these days.
    1. Re:And yet by Gr8Apes · · Score: 4, Interesting

      First, the EU is bigger population-wise than the US, or even the US + Canada.

      Having lived in multiple parts of both, I can say that living in New England in the US most closely resembles living in a roughly single language version of Northern Europe. Architecture and cultural changes abound in relatively short distances. Once you move west out of NE and New York, it largely and quickly becomes large homogeneous areas. Communication in some can be difficult. I recall one time in Tennessee having to order by number because the counter help (definitely all locals, and quite possibly from the same small gene pool) could not speak in anything approaching an understandable dialect (similar to Cockney vs Scots, or Dutch vs Flemish).

      I can also say that many of my co-workers in 2 places in Europe had never gone more than 15 miles from their birthplace. However, in all fairness, that 15 miles covered more than 3 major cities and multiple smaller towns, sometimes with great differences between them.

      In Europe, you will also get a set of primary TV channels from all the surrounding countries, a really nice feature. Why US cable/satellite providers don't supply BBC, German, Spanish, and French direct feeds I'll never really understand, other than it interferes with the MAFIAA control over what is seen in the US.

      --
      The cesspool just got a check and balance.
    2. Re:And yet by TheRaven64 · · Score: 2, Interesting

      I've visited Utah, New York (and some of the surrounding area), and Pennsylvania. They are certainly different, and if I were to wake up in any then I could quite quickly work out which it was without relying on maps or landmarks. The amount of cultural diversity I encountered, however, was about the same as I would get travelling across England. I realise I haven't been quite to opposite extremes. Going from central London to north Wales I find a cultural gradient at least as great as any found in the USA.

      Travelling across Europe is at least an order of magnitude more varied. Even somewhere like France, which is far more anglicised than they would care to admit, is home to a very different culture with a completely different outlook on life. The north and south of France are as different as the north and south of England, but to a Brit like myself the differences to the UK that they both share are more apparent than the differences from each other. Trying to portray the EU as one homogeneous blob is so wrong it's laughable.

      --
      I am TheRaven on Soylent News
  10. what a choice by Swampash · · Score: 3, Insightful

    Seems like our options are the Oil Industry Party or the Media Industry Party. Great.

    1. Re:what a choice by ragefan · · Score: 3, Funny

      Don't blame me, I voted for Kodos -- Homer Simpson

  11. Why is Congress involved? by dada21 · · Score: 4, Interesting

    This makes no sense. For this post, I won't actually fight against copyright. Let us all agree that copyright exists, and that there are current penalties for violating it.

    First of all, Congress has NO power to set prices for any reason -- none. No government should ever set price caps or minimums. Doing so creates high prices and restricted inventories (or none at all). Let the market set pricing.

    If the license-owners of music want to charge a given rate, let them. Those who can pay the rate will, those who can't will either move to different content, or pirate said content.

    Here's where it gets exciting: piracy. With the huge number of people who want to transmit online, and the huge amount of countries and provinces to transmit from, it could be more expensive for the license-owners to go after someone streaming to 40 people than they'd get from the outcome. The amount of bandwidth on the web is virtually unlimited versus radio, and the reach is virtually unlimited. This means a virtually unlimited supply of music -- regardless of demand, the price will fall. If the license-owners think they can charge more than the market is willing to pay, they won't last long. The days of the power of copyright are quickly sliding through their fingers, into the open hands and mouths of those who want to spend their time providing a service that others want.

    That service is NOT necessarily music, but a specific combination of music (and maybe commentary). It is THIS part of the service that the end users will pay for (either directly, or through advertising sponsorship). One specific song is NOT the important part, in fact it is the least important part. There are virtually unlimited songs to choose from, even in a given genre. There are NOT unlimited people who are talented in packaging these songs together into a format that someone else wants, and spend the same time marketing to the audience at large. The income is generated for the new labor created -- as the market should work. Old labor in the form of an easily copy-able song should fall to nearly zero. The bands who are played on these stations should be excited to get free marketing to promote their future concerts, personal appearances, or other live labor expenditures that they can sell in real time to their fans. Their labors, in real time, are worth way more than a pre-recorded, easily copied song worth zero or close to zero due to oversupply.

    Get the tyrants in Congress out. These people have no understanding of the specific powers provided to them, by the People, through the Constitution. Congress does not have unlimited power.

    1. Re:Why is Congress involved? by baboo_jackal · · Score: 2, Interesting

      What will always derail the desired effects of a free market is a monopoly with the RIAA definitely has. I don't think the answer to this is legislation. Eventually, the current business model for the music industry will have to undergo a dramatic shift, or even a catastrophic collapse.

      It's obvious that those running the various media "AA's" aren't thinking more than a few moves ahead at this point - and why would they? There's too much money to be made by introducing weird, stupid royalty schemes on new technology.

      Efforts to legislate them into sanity are just prolonging the inevitable collapse of their retarded house-of-cards money-grubbing.
  12. Fine. Pay the royalties BUT.. by DrRobert · · Score: 2, Interesting

    ... only play music that is more than five years old. If the music industry wants newer material... (the records they want to sell) played on the radio then charge them the standard ad rate. I have bought 50 CDs in the last two months that I would never have bought if I hadn't heard them on the radio. I don't think the mainstream commercial record industry can exist without radio play.

  13. Which part of the Constitution authorizes this? by j1mmy · · Score: 4, Insightful

    I wasn't aware that regulating media licensing fees was one of the powers enumerated in Article 1, Section 8.

  14. Re:One's "illegal lobbying" by ScrewMaster · · Score: 2, Insightful

    Well, actually that enthusiastic modding-up was mostly +n Funny, which indicates that the mods have more of a sense of humor than the rest of you over-analytical types. More to the point, however, Congress is making deals with a known corrupt organization (there, is that better?) ... but then again Congress itself has, since Colonial times, also been a known corrupt organization. Had it not been for the malfeasance of various members of Congress over the past century, copyright and patent law wouldn't be in their current state of disarray, and SoundExchange, in its current form, would never have been suffered to exist.

    --
    The higher the technology, the sharper that two-edged sword.
  15. Re:One's "illegal lobbying" by mi · · Score: 2, Interesting

    Congress is making deals with a known corrupt organization (there, is that better?)

    Well, Slashdot is full of praise for organizations, that are similarly corrupt — such as Pirate Bay, for example. The difference? Pirate Bay are (alleged to be) breaking laws, that Slashdotters feel, should not exist.

    I think, my first post on the subject made a good argument, why there should be no such thing as "illegal lobbying" — because the right "to petition the government for redress of grievances" is directly derived not only from "the spirit", but also from the letter of the very First Ammendment...

    So, if the Ammendment can be construed to enshrine the right to, for example, sell pornography or to speak anonymously (both rather indirect derivations from the spirit of the Ammendment), any laws banning lobbying are flat-out un-Constitutional.

    --
    In Soviet Washington the swamp drains you.
  16. Re:One's "illegal lobbying" by ScrewMaster · · Score: 2, Interesting

    Actually, no ... The Pirate Bay is breaking no laws it its country of origin, so that's really a bad example. Granted, they've moved their servers elsewhere and replicated them because they don't trust their lawmakers to have a backbone. Still, the fact that The Pirate Bay torques off the self-appointed copyright cops in the USA or anywhere else is irrelevant to any discussion on copyright. Furthermore, I've yet to read a single Slashdot comment seriously advocating the abolition of copyright, but what we do want to see is some balance returned to the system. Your lobbyist friends have caused some serious harm to United States copyright law by their illicit activities. Given the quantity of bad law resulting from their efforts (hell, it was shown that MPAA lawyers drafted the DMCA!) you can't excuse what they've been doing as being either within the spirit or the letter of the Constitution. It's abusive, amoral and wrong.

    Furthermore, there are a lot of ways to look at lobbying. Petitioning for redress of grievances was never intended to apply to corporate entities, since at the time the Constitution was written corporations didn't have the rights of individuals. At least, that's my understanding, presumably someone with a legal background will correct me. Regardless, you can make your case that no lobbying should be considered "illegal", but the reality is that something has to be done because lobbying (illegal or otherwise) has resulted in serious imbalance between the rights of individuals vs. the rights of corporations in this country. Do you really believe that your Congressman will listen to your personal feelings on any issue? Of course not: the best they'll do is get a feeling for what their constituents want, and if that doesn't conflict with what their corporate sponsors want, you might get a good law.

    My belief is that lobbying should be illegal, period. You want to write your Congressman and convince him of the merits of your position? Great, go for it. You want to wine him, and dine him, and give him free hookers and expensive vacations? Want to write him checks? Sorry ... that crosses the line between "redress of grievances" to "undue influence" and "corruption" and that is illegal.

    --
    The higher the technology, the sharper that two-edged sword.
  17. Re:One's "illegal lobbying" by LMariachi · · Score: 2, Informative

    RTFA. Soundexchange is a nonprofit authorized by 17 USC 114 (g) (3) to collect royalties on behalf of sound recording copyright owners, on an opt-out basis. With that privilege come certain restrictions on how it may spend the royalties it collects. Hiring lobbying firms and PR flacks is not on the list of approved expenditures. This is no more a First Amendment violation than a Department of Defense contractor NDA is.

  18. Re:lol by jesboat · · Score: 2, Interesting

    That's a buffer in the wrong direction. My point is that the main use of a p2p system would be that the main server doesn't need to transmit the latest streaming content to everyone.

    That would imply that it only transmits data to some people. They need to transmit the data to other people, but there's no incentive for them to do so, because the other party would be unlikely to have data which the first party would want.

    The only way there would be an incentive to share would be if you gave some people immediate data and some people data for.. say.. 30s from now. But, unless you have an extremely active swarm, you'd need a very large buffer (measured in time) to give data enough chance to propagate before everyone needs it.

    It would also be even harder than it currently is in order to get people close to synchronized in terms of their playback position.

    Then, you're going to want the system to be reasonably resistant to client disconnects. Certainly to a few clients, and, if you're trying to put "near" (either by network or geographical proximity) clients together, you're going to want to be resistant to if an entire block (say, a campus with a number of listeners) drops. If you have a persistent graph of who streams to who, you're going to need more time to readjust it; if you compute which pieces go where on a continuous basis (per BitTorrent) you'll also need more time, since there will be less predictability.

    Once you get into a buffer window the size of a song, you no longer have Internet radio, you have "automated downloading of songs".