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A Commonsense Proposal On Net Radio Rates

quark235 tips us to an open letter to the RIAA, proposing a fairer royalty structure for Net radio, written by Paul A. Gathard. Gathard is president of Barnabus Road Media, a company that provides streaming radio services to commercial and non-commercial stations across the US. He contends that his proposed rate structure, if implemented, would actually result in higher total revenues to SoundExchange than their current proposal would, after it kills off 90% of Net radio stations.

94 comments

  1. Not the point. by Hsensei · · Score: 5, Insightful

    Isn't the whole point to kill off 90% of internet radio?

    --
    ~
    1. Re:Not the point. by Anonymous Coward · · Score: 0

      No, its to try and kill off all of them.

    2. Re:Not the point. by davester666 · · Score: 1

      yeah, so they pressure regular radio, in part, by pointing to the insanely high rates per listener for net radio [even if there are only a few remaining "stations" still operational].

      --
      Sleep your way to a whiter smile...date a dentist!
    3. Re:Not the point. by caffeinemessiah · · Score: 2, Insightful
      Isn't the whole point to kill off 90% of internet radio?

      True, but this might just weaken their case a little bit. The whole premise of the RIAA has been that Net Radio hurts the artists. If you can show, with some accounting integrity and verifiability, that an alternative scheme would allow for both higher royalties *and* the existence of net radio, then a reasonable judge (or congress hopefully) would be less willing to summarily grant the ridiculous new royalty rates. In other words, it forces the RIAA to stop banking on the "it hurts royalties" argument and bring up the less obviously-in-the-right issue of DRM (which I also think is a flawed argument, btw).

      --
      An old-timer with old-timey ideas.
    4. Re:Not the point. by Adambomb · · Score: 1

      Tsk, you forget that clearchannel and friends surely want to have crappy ad laden cross-faded dj-talked over streams to be your new advertising service provider.

      --
      Ice Cream has no bones.
    5. Re:Not the point. by jdunlevy · · Score: 1

      Yeah, I'm convinved you're right; the goal is to kill off 90% (or more!) of internet radio. The RIAA's goal is to preserve itself by making sure that there's no alternative to the music they offer. If anybody can be a webcaster, and a number of webcasters play independent, non-RIAA music, more people will be aware of -- and buy -- independent, non-RIAA music. The RIAA's solution is to shut down outlets for independent, non-RIAA music, and preserve a relative few, highly concentrated outlets which the RIAA has, over the years, learned how to control.

    6. Re:Not the point. by Gorshkov · · Score: 1

      Isn't the whole point to kill off 90% of internet radio?
      No - the whole point is to kill off 90% of internet radio based in the USA

      Anybody interested in Canadian co-location services?
  2. I have a good amount... by Eddi3 · · Score: 1

    I think I know a good amount most net radio stations should be paying... $0

    I still can't believe SoundExchange has the right to do what they're doing.

    1. Re:I have a good amount... by CaptainPatent · · Score: 3, Informative

      I think I know a good amount most net radio stations should be paying... $0

      I still can't believe SoundExchange has the right to do what they're doing. While you do have a reasonable point when considering independent material which is placed on the internet specifically to be openly available to everyone, there is a distinct problem when dealing with copyrighted material. Additionally I feel that the root of your post deals with SoundExchange making money off of material that isn't specifically theirs which I do agree is a problem. I do feel however, that your post deals with the issue in the incorrect manner.
      In the music industry anymore there are so many middlemen and markups that everyone is being charged way too much and it seems like the profits are going to everyone except the artist. I feel that internet radio playing music under copyright shouldn't be free, but the ad revenues should go directly back to the artists and not the scum (like SoundExchange) that are trying to make something from nothing. There are advertisers and such along the way that actually provide a valuable service which increase the overall cost, but other than that the music industry has reached the point of ridiculousness.
      --
      Well, back to rejecting software patent applications.
    2. Re:I have a good amount... by OldeTimeGeek · · Score: 1
      I think I know a good amount most net radio stations should be paying... $0

      Why? If they are playing copyrighted music, why should they not follow the same rules as the commercial stations?

      Most of the sites that I've been to have some form of advertising. If they are using music to bring people to their site and they are making money by ad views, their purpose is not a whole lot different than commercial stations. They just make a bunch less money at it.

      If the sites make money - over and above operating costs - their hold on the moral high ground is a bit shaky.

    3. Re:I have a good amount... by compro01 · · Score: 1

      Why? If they are playing copyrighted music, why should they not follow the same rules as the commercial stations?

      and if they aren't playing copyrighted music?

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      upon the advice of my lawyer, i have no sig at this time
    4. Re:I have a good amount... by cayenne8 · · Score: 2, Insightful
      "While you do have a reasonable point when considering independent material which is placed on the internet specifically to be openly available to everyone, there is a distinct problem when dealing with copyrighted material. Additionally I feel that the root of your post deals with SoundExchange making money off of material that isn't specifically theirs which I do agree is a problem. I do feel however, that your post deals with the issue in the incorrect manner."

      Wait a minute. Are you saying that ANY streaming audio (video too?) on the internet is subject to paying SoundExchange? What if I am streaming my own personal music? What about if a band I'm in, streams out songs (assuming unsigned band)? Can I be reading this correctly? I find it hard to believe that if I stream audio that isn't copyright protected...I have to pay anybody squat....

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
    5. Re:I have a good amount... by cayenne8 · · Score: 1
      "If the sites make money - over and above operating costs - their hold on the moral high ground is a bit shaky."

      What if Joe Sixpack just wants to stream music off his site...for free? No revenues collect at all? No ads, just doing it for fun?

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
    6. Re:I have a good amount... by CaptainPatent · · Score: 1

      Wait a minute. Are you saying that ANY streaming audio (video too?) on the internet is subject to paying SoundExchange? What if I am streaming my own personal music? What about if a band I'm in, streams out songs (assuming unsigned band)? Can I be reading this correctly? I find it hard to believe that if I stream audio that isn't copyright protected...I have to pay anybody squat.... um, his point is radio should be free, I agreed with is point in that case. In summary, no, you aren't reading that correctly.
      --
      Well, back to rejecting software patent applications.
    7. Re:I have a good amount... by QRDeNameland · · Score: 5, Informative

      Why? If they are playing copyrighted music, why should they not follow the same rules as the commercial stations?

      OK, do you know how much over-the-air commercial radio stations pay to the RIAA for recording royalties? It *is* $0.

      It seems to be a little known fact, but regular over-the-airwave radio, since its inception, has only had to pay songwriting royalties (i.e., those collected by ASCAP, BMI, and SESAC) for any songs they broadcast, but have never had to pay recording royalties ("mechanicals", in the trade). Why? Because it was always seen as a mutually beneficial arrangement: the radio station gets to sell advertising time over free use of the recordings, the copyright holders of the recording get free exposure which helps them sell records.

      The whole point here is that they *do* want different rules for internet radio...that the RIAA thinks internet radio *should* pay mechanical royalties over-the-air broadcasters don't, and they've been doing this for over 12 years now, and it most definitely *has* hurt internet radio.

      --
      Momentarily, the need for the construction of new light will no longer exist.
    8. Re:I have a good amount... by Anonymous Coward · · Score: 0

      but the ad revenues should go directly back to the artists and not the scum (like SoundExchange) that are trying to make something from nothing If you actually read through the whole post I think you'll see he's pretty much opposed to SoundExchange's existence. Hope that clears things up
    9. Re:I have a good amount... by OldeTimeGeek · · Score: 1

      If they're not, then they should be left alone.

    10. Re:I have a good amount... by Anonymous Coward · · Score: 0

      While you do have a reasonable point when considering independent material which is placed on the internet specifically to be openly available to everyone, there is a distinct problem when dealing with copyrighted material. Care to explain why you have to relinquish copyright if you're going to create "independent material which is placed on the internet specifically to be openly available to everyone"?

      Why should anyone listen to you when your first sentence shows you have no idea what you're talking about?
    11. Re:I have a good amount... by OldeTimeGeek · · Score: 1
      Then my first statement still applies - just a bit differently.

      If commercial radio stations aren't paying any royalties or fees, then the Internet radio stations should be given the same consideration.

    12. Re:I have a good amount... by OldeTimeGeek · · Score: 1

      That's a tough one, but it kinda falls under the "not making any money at it" clause - at least to my point of view. Which means less than nothing to the licensing groups.

    13. Re:I have a good amount... by Anonymous Coward · · Score: 0

      Care to explain why you have to relinquish copyright if you're going to create "independent material which is placed on the internet specifically to be openly available to everyone"?

      Care to explain how the hell you got from his (factually correct, due to the federal government placing automatic and mandatory royalties on all copyrighted music played online) statement that playing copyrighted music online is a problem, to "lol let's give up our copyrights"?

    14. Re:I have a good amount... by Propaganda13 · · Score: 1

      The big problem I have with these "protect the artists" groups is who actually gets the money. If I have an internet radio station that only plays Wham!, why should any other artist get paid a random amount of money. Dammit, George Michael and Andrew Ridgeley should get paid! SoundExchange, Klaus Meine, Calvin Broadus, Jr, and Amy Winehouse should keep their hands to themselves.

      In this day and age, computing costs by individual song played shouldn't be a big deal.

    15. Re:I have a good amount... by fritsd · · Score: 1

      Not ANY streaming audio, just in the USA I thought. The world is thankfully a little larger than that.

      --
      To be, or not to be: isn't that quite logical, Slashdot Beta?
  3. What? And give up their carrot-and-stick game? by leventhal · · Score: 4, Informative

    They've already got the net radio groups between a rock and a hard place. They haven't started collecting yet but they're pushing for DRM and baiting with reduced rates for small broadcasters.

    1. Re:What? And give up their carrot-and-stick game? by pedramnavid · · Score: 1

      Also known as Hard Rock RIAA!

  4. Except it isn't about income... by AVee · · Score: 4, Insightful

    It is all about control, not about net income. So killing 90% of the web radio stations is better than a higher income because it is easier to control a few radio stations and because those pesky small independent stations will be the first to go down.
    When that has been dealt with the income issue will be revisited. Raising income is a lot easier when your monopoly is still intact, maintain the monopoly and the income will come anyway. Currently it is the monopoly that is being defended and any plan which does not include maintaining the monopoly is a bad idea, even when it increases revenue.

    1. Re:Except it isn't about income... by hrrY · · Score: 1

      Took the words right out of my mouth.
      Great post.

  5. The RIAA doesn't want a fair rate structure by Conspiracy_Of_Doves · · Score: 1

    They want to kill Net Radio

  6. In a weird and twisted way.. by Anonymous Coward · · Score: 5, Interesting

    ..I almost hope they succeed in killing off "legit" Internet Radio. The Internet could really use a nice dose of the good old Pirate Radio culture.

    1. Re:In a weird and twisted way.. by Beyond_GoodandEvil · · Score: 1

      ..I almost hope they succeed in killing off "legit" Internet Radio. The Internet could really use a nice dose of the good old Pirate Radio culture.
      Sure but how many times can you listen to "A Walk in the Black Forest"?

      --
      I laughed at the weak who considered themselves good because they lacked claws.
  7. Revenue isn't the issue here, DRM is... by Fallen+Kell · · Score: 3, Insightful

    We already know that the reason for the extremely high rates are because the RIAA really wants this simply to have DRM used on the streaming stations. That was already proved in recent negotiations over the rates. Since the RIAA's lobbying efforts in having the FCC mandate DRM onto the medium failed, they are now trying to do the same thing by forcing licensing fees that are extremely high on the stations.

    --
    We were all warned a long time ago that MS products sucked, remember the Magic 8 Ball said, "Outlook not so good"
    1. Re:Revenue isn't the issue here, DRM is... by Anonymous Coward · · Score: 0

      DRM doesn't work, seriously. In order to PLAY on the persons computer, the bits have to be decoded at SOME POINT in the line. That means anyone can pipe in at THAT point on the line, and record the music without DRM thereby making DRM ineffective.

      DRM simply makes the real costumers get mad when they can't exercise their fair use rights. It makes the customer feel like they are a thief, which is a bad idea...

    2. Re:Revenue isn't the issue here, DRM is... by Anonymous Coward · · Score: 2, Informative

      DRM doesn't work, yet

      I corrected that for you.

      They don't want it to work yet. While DRM is useless, politicians & the general public wont see the real harm in it. If a politician knows anything about DRM.. he/she will probably just know that most DRM gets broken (you wont see many 'DRM Brand XX is secure' news stories) so they really wont see the problem with laws that mandate DRM. They might have heard of ICT (Image Constraint Token) in HDTV but the broadcasters won't be using it so thats not a problem.

      http://en.wikipedia.org/wiki/Next-Generation_Secur e_Computing_Base

      NGSCB = DRM = TPM

      Newer CPUs already contain TPM parts. Soon, hard drives will come with TPM as will motherboards, sound cards and most other computer components. Microsoft will eventually make TPM/DRM hardware mandatory to gain full driver compliance. If 90% of desktop PCs require TPM components and most servers (which could actually benefit from TPM) use TPM, most hardware manufacturers will sell TPM-encumbered hardware. If they sell non-TPM stuff at all it will end up more expensive. They might even get governments to stop sales of non-TPM hardware as it is clearly less secure than TPM-enriched junk.

      When 90% of the hardware you can buy if physically incapable of doing anything MS & the content companies doesn't want.. thats when they'll start using proper DRM. If you dont want to buy TPM hardware you'll either have to pay a big premium or use older hardware.

  8. And this proposal will be accepted? by thornomad · · Score: 1

    If the proposal is, indeed, a "fairer" way to charge stations I don't see any indication that the RIAA would be interested in accepting the notion. "Fair" or "reasonable" doesn't seem to be part of how they operate.

  9. don't be silly by circletimessquare · · Score: 1

    please, none of this understanding the details or technological change or economic nuance...

    if we have a problem: sue sombody!

    problem solved, end of story

    --
    intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it
  10. Summary reminds me of a priceless Idiocracy quote by DimGeo · · Score: 4, Funny

    The summary of the article reminds me of this priceless Idiocracy quote:
    "Joe stated his case logically and passionately, but his perceived effeminate voice only drew big gales of stupid laughter."

    http://www.youtube.com/watch?v=b2izZYZVhEA

    I rest my case.

  11. I don't Understand by JamesRose · · Score: 1

    I don't think this is idea of giving the RIAA other fairer options is going to work. I don't beleive for one second that the RIAA has not looked through all their options- including fair ones, liberal ones and harsh ones and resolved upon this- giving them a strongly worded letter trying to persuade them wont work, they know this isn't fiar. Basically, they want pay per listen because theats what they'd like to do selling their music and is just another step in that direction.

  12. And in France? by SuperCharlie · · Score: 2, Interesting

    I wandered across a pretty spiffy net radio site.. Ill spare the site from slashdottedness.. and thought to myself, well, theyll be gone soon. They offer low quality free streaming and high quality paid streaming around 15 bucks a year. I decided to see what the EULA said and found it was all based (at least company-wise) in France. If I recall correctly (which is a stretch) I recall France being very liberal with online music and formats and whatnot. I would think more net radio would just wander to more hospitable countries since its not the US internet but in fact World Wide.

    Then of course its up to filtering, which I wouldnt put past our government.

    1. Re:And in France? by Dan667 · · Score: 1

      What is the url. Might as well start looking off shore as I do not have very much confidence in the US Congress helping this situation.

    2. Re:And in France? by SuperCharlie · · Score: 1

      OK.. I guess Ill not listen for a few days.. musicovery.com

      I am in no way affiliated with them.

      The only prob I find is their application (flash) hanging every so often.. but youll see its worth their novel approach.

      Let the server overload begin..sigh..lol

    3. Re:And in France? by Binkleyz · · Score: 1

      Dude!

      Excellent site.

  13. Make rates based on time listened by crow · · Score: 1

    The rates should not be per-performance, but per-minute. So if the station plays a given song, it will pay based on the length of the song times the number of listeners. This matches well with advertising being a consistent amount for a given amount of time, so it should track with the revenue that the webcaster would be seeing.

    I do agree with the argument that the webcasters should be providing more detailed information on what is being played. That would give more accurate distribution back to the artists (well, if they actually were to do so; I suspect they only want the data for marketing reasons).

  14. Solution: Avoid RIAA Music by Paul+Slocum · · Score: 1

    Can't a web radio station continue to operate without paying royalties as long as they stick to independent labels? What is the history of indie labels enforcing radio royalties and such?

    I say let them raise the rates and then spread the word that internet stations just need to avoid all labels in the RIAA to avoid getting slammed.

    1. Re:Solution: Avoid RIAA Music by SuperCharlie · · Score: 1

      This is the solution to this insanity on so many levels..

    2. Re:Solution: Avoid RIAA Music by multisync · · Score: 4, Informative

      Can't a web radio station continue to operate without paying royalties as long as they stick to independent labels?


      No. The royalties are collected for all songs played, even those from independent labels. Independent artists have the option of registering with SoundExchange so they may receive royalties collected on their behalf, less SoundExchange's fee.

      --
      I don't care why you're posting AC
    3. Re:Solution: Avoid RIAA Music by RingDev · · Score: 1

      There has to be some cut off though... I mean, talk radio doesn't pay a SoundExchange fee... do they?

      -Rick

      --
      "Most people in the U.S. wouldn't know they live in a tyrannical state if it walked up and grabbed their junk." - MyFirs
    4. Re:Solution: Avoid RIAA Music by multisync · · Score: 1

      There has to be some cut off though... I mean, talk radio doesn't pay a SoundExchange fee... do they?


      They do if they play music.

      And, by the way, no "radio" stations pay these royalties, only web stations. You probably knew that, but if you didn't, you do now.
      --
      I don't care why you're posting AC
    5. Re:Solution: Avoid RIAA Music by cparker15 · · Score: 1

      So then net radio stations should just stay away from SoundExchange artists altogether and find a way to deliver royalties directly to the artists that are left.

      --
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    6. Re:Solution: Avoid RIAA Music by multisync · · Score: 2, Informative

      The Digital Performance in Sound Recordings Act of 1995 and the Digital Millennium Copyright Act of 1998 grant the copyright holder of the "performance" of a song the right to collect a royalty each time that "performance" is played on an Internet webcast. It doesn't matter whether the copyright holder is a member of SoundExchange or not, the royalty is collected regardless.

      An artist apparently may choose to negotiate deals with webcasters. I am not sure exactly how this works, but it would require the webcaster to negotiate separate deals with the copyright holders of every "performance" they play. This would likely kill of most small webcasters as surely as the rates proposed by the CRB would.

      --
      I don't care why you're posting AC
    7. Re:Solution: Avoid RIAA Music by belg4mit · · Score: 1

      So far as I understand, no. Not without incurring headaches. SoundExchange will still try to collect royalties
      to pass on (minus handling fees). That's one of the major sticking points here, they're tied to the RIAA but
      claim to be acting on everyone's behalf.

      --
      Were that I say, pancakes?
    8. Re:Solution: Avoid RIAA Music by QRDeNameland · · Score: 1

      And, by the way, no "radio" stations pay these royalties, only web stations. You probably knew that, but if you didn't, you do now.

      Thank you...I pointed this out upthread. Even with all of the anti-RIAA sentiment on /., the fact that over-the-air radio does *not* have to pay any royalties to the RIAA seem to get completely lost in this discussion.

      --
      Momentarily, the need for the construction of new light will no longer exist.
    9. Re:Solution: Avoid RIAA Music by shish · · Score: 1

      The royalties are collected for all songs played, even those from independent labels. I'm tempted to set up a web radio station playing nothing but music I've composed and played myself, then wait for them to take me to court. But then I can't afford a team of well paid lawyers, so they'd probably win :-/
      --
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    10. Re:Solution: Avoid RIAA Music by Anonymous Coward · · Score: 0

      This actually isn't technically correct. The royalties are collected for all broadcasts covered by compulsory licenses. Any specific license agreement between the broadcaster and copyright holder is not subject to SoundExchange. The RIAA labels will most likely thumb their nose at any attempt on the part of small webcasters to contract their music directly, but independent labels might be more willing. If they could overcome that hurdle, it would allow them to broadcast without paying SoundExchange anything.

      Still, this is a huge amount of paperwork and monitoring of their playlists to ensure that they never play anything that they don't have an explicit license to play.

    11. Re:Solution: Avoid RIAA Music by Svartalf · · Score: 1

      Which is actually bogus. If I, an Indie, WISH to have my music given airtime without royalties, then it SHOULD. If I've got arrangements with the performers I'm streaming over the wire, I shouldn't HAVE to be required to participate in that racket- which is all this is.

      --
      I am not merely a "consumer" or a "taxpayer". I am a Citizen of the State of Texas
    12. Re:Solution: Avoid RIAA Music by multisync · · Score: 1

      Any specific license agreement between the broadcaster and copyright holder is not subject to SoundExchange.


      You're absolutely correct. I stated as much elsewhere, but you put it better. If a station wanted to, they could negotiate deals with independent (read non-RIAA) artists, and play their music exclusively. It's doubtful, however, that a commercial or listener-supported station could sustain itself with such a restrictive playlist. And - as you pointed out - they would spend all of their time in meetings with lawyers and agents rather than playing music.

      Still, each deal negotiated with an independent would be a nail in the RIAA's coffin. And using their own system against them has a lot of appeal.
      --
      I don't care why you're posting AC
    13. Re:Solution: Avoid RIAA Music by multisync · · Score: 2, Insightful

      I shouldn't HAVE to be required to participate in that racket- which is all this is.


      You don't. I over-stated the rules in my earlier post, as was pointed out here An independent artist could negotiate deals with webcasters and I suppose notify SoundExchange that they do not wish royalties to be collected on their behalf (or maybe the webcaster would advise SoundExchange of which artists they have deals with, I'm not sure exactly how it works).

      It would be a lot of work for independent artists who either represent themselves or are signed with small labels. Not to mention the workload for webcasters who are doing everything themselves. Again, I have no doubt that the whole point is to make it difficult for these two groups, as they pose a threat to the RIAA's business model.

      Perhaps if anything good comes out of this, it would be that independent artists could band together and form collectives to negotiate fair deals with independent (non-RIAA controlled) webcasters, similar to BMI and ASCAP which are, I believe, non-profit groups made up of artists, not a shadowy front for the recording industry like SoundExchange.

      --
      I don't care why you're posting AC
    14. Re:Solution: Avoid RIAA Music by RingDev · · Score: 1

      Wow, thanks for the heads up. I thought they did have fees, but they were based on revenue and had an insignificant impact on the overall cost of station opperations.

      -Rick

      --
      "Most people in the U.S. wouldn't know they live in a tyrannical state if it walked up and grabbed their junk." - MyFirs
    15. Re:Solution: Avoid RIAA Music by Dark_Gravity · · Score: 1

      Can't a web radio station continue to operate without paying royalties as long as they stick to independent labels?


      No. The royalties are collected for all songs played, even those from independent labels. Independent artists have the option of registering with SoundExchange so they may receive royalties collected on their behalf, less SoundExchange's fee.

      There is nothing that prevents Independent labels from writing their own contracts with internet radio station which explicitly block SoundExchange from collecting fees.
    16. Re:Solution: Avoid RIAA Music by Anonymous Coward · · Score: 0

      Realistically, you're unlikely to get enough listeners to even register on their radar. Not slighting your musical abilities of course, but I seriously doubt many people will listen to such a station for very long. This sort of thing simply isn't going to be a threat to them.

    17. Re:Solution: Avoid RIAA Music by RegularFry · · Score: 1

      One wouldn't stand much of a chance, but a collective might. Hell, an indie label with its own station might not be such a bad idea in its own right.

      --
      Reality is the ultimate Rorschach.
    18. Re:Solution: Avoid RIAA Music by multisync · · Score: 1

      Yes, as has been discussed elsewhere in this thread, any station may negotiate their own agreements with the rights holders of the performances they play and bypass SoundExchange.

      Whether or not a commercial or listener-supported station could sustain itself by exclusively playing performances they have negotiated separate deals for is another matter, but technically, yes they have that choice.

      --
      I don't care why you're posting AC
    19. Re:Solution: Avoid RIAA Music by MrNiceguy_KS · · Score: 1

      If ClearChannel had to pay the proposed web radio royalties on their OTA stations, it would put them out of business.

      --
      Redundancy is good And also good.
    20. Re:Solution: Avoid RIAA Music by MrNiceguy_KS · · Score: 1

      I've speculated about this before, but could webcasters switch to playing only Creative Commons licensed music? Wouldn't the Creative Commons agreement constitute a contract between artist and broadcaster, thus bypassing SoundExchange?

      --
      Redundancy is good And also good.
    21. Re:Solution: Avoid RIAA Music by RingDev · · Score: 1

      ooooo, now there's something I can take to my legislature!

      -Rick

      --
      "Most people in the U.S. wouldn't know they live in a tyrannical state if it walked up and grabbed their junk." - MyFirs
    22. Re:Solution: Avoid RIAA Music by multisync · · Score: 1

      Rights holders and webcasters apparently have that option, but I don't know how it works, and whether the royalties would not be collected at all, or if you would have to apply to SoundExchange to be reimbursed for fees that are obviated by an existing agreement.

      This also reminds me of discussions I read here re: the Zune attaching DRM to music files you "squirt" to your friends, regardless of the wishes of the copyright holder who may have licensed the work under something like Creative Commons.

      Another thing that I don't think gets mentioned enough is the fact that most commercial and listener-supported Internet music stations are run by people who love music, and want to support artists. I truly believe the majority would be happy to pay a fair royalty if it was equally applied. The problem is these rates are out of this world, and they are not paid by the Terrestrial radio broadcasters. It's for these reasons that people like myself argue the rates' true purpose is to put independent artists and Internet broadcasters out of business, as they pose a threat to the control currently enjoyed by RIAA member labels. (I'm not saying any of this in response to anything you said, I just don't think it gets said enough in these discussions. The RIAA wants the public to believe Internet stations are freeloading, when in fact they are carrying a heavier load than their radio counterparts).

      --
      I don't care why you're posting AC
    23. Re:Solution: Avoid RIAA Music by MrNiceguy_KS · · Score: 1
      Rights holders and webcasters apparently have that option, but I don't know how it works, and whether the royalties would not be collected at all, or if you would have to apply to SoundExchange to be reimbursed for fees that are obviated by an existing agreement.

      Here's how I envision it working:

      SoundExchange: You owe us [unholy sum] based on the number of listeners and number of songs broadcast.

      Webcaster: Here's a copy of the agreement we have with the artists we broadcast. Shows Creative Commons license. Now piss off.

      Of course, this does eliminate all non-CC artists from the playlists. And I very much agree with your statement that Internet radio stations are run by music lovers who want to support the artists. Those that are operating legally, (the vast majority, I'm sure,) have been paying royalties -- royalties above and beyond what any other form of broadcast is paying.

      I'd like to take the opportunity to remind every US Slashdot reader to contact your Senators and Representatives and urge them to support the Internet Radio Equality Act, which would set the royalty rates for net radio equal to the rates for satellite radio. (Still higher than standard broadcast radio.)

      --
      Redundancy is good And also good.
  15. U.S. law only applies in the U.S. by Anonymous Coward · · Score: 0

    What I don't understand is why all the net radio stations don't purchase hosting outside of the U.S. and tell soundexchange to shove it.

  16. He obviously doesn't understand by overshoot · · Score: 2, Insightful

    He contends that his proposed rate structure, if implemented, would actually result in higher total revenues to SoundExchange than their current proposal would, after it kills off 90% of Net radio stations.
    Yeah, but would his proposal accomplish the RIAA's main objective, which is killing off Net radio?
    --
    Lacking <sarcasm> tags, /. substitutes moderation as "Troll."
    1. Re:He obviously doesn't understand by kalirion · · Score: 1

      Besides which, sound exchange is supposed to be non-profit. The revenue should only cover operating costs. The more stations to administrate over, the more operating costs.

  17. Nice try, but... by Anonymous Coward · · Score: 0

    Mr. Gathard's thesis is based on the assumption that the executives of the major recording companies give a flying mule turd what the public thinks of them. All they wish to do is extract money from all of us in such a way as to support their own standard of living.

  18. Still beggin their masters... by msimm · · Score: 4, Interesting

    When the answer is simple (complex). You either rely on the whims and foresight of another (bad business strategy) or you chose your own route. The RIAA holds its control over the net radio market by a hair. Simply because no-ones really challenged them, on their own ground.

    Begging is going to get you very little, but working directly with the very labels and artists in an organized fashion and you'll be able to by-pass the RIAA in this regard (largely) altogether. Setup a foundation to be a industry friendly clearing-house to handle limited blanket licensing in terms the industry finds acceptable. Most labels want protection (from piracy and misuse) but also want exposure. With a little will (and funding) I think there would only be a few majors that would hold out. The same ones that want the market to be smaller in the first place. Which really would be a win-win. RIAA exclusive labels/artists could limit their exposure and practice the same kinds of influence they've become accustomed to. Smaller or more open labels and artists could continue to gain exposure and change the very markets the RIAA is trying to limit.

    --
    Quack, quack.
    1. Re:Still beggin their masters... by PeterBrett · · Score: 1

      Setup a foundation to be a industry friendly clearing-house to handle limited blanket licensing in terms the industry finds acceptable. Most labels want protection (from piracy and misuse) but also want exposure.

      I recently registered broadcastbroker.{org,net,co.uk,org.uk} with exactly this in mind. Please get in touch if you're interested in taking this further.

  19. Wow, capital G! by fury88 · · Score: 1

    Greedeo killed the Net Radio Star!

    1. Re:Wow, capital G! by blitziod · · Score: 1

      the Net Radio Star shot first!

      --
      The only way to bust a doper--is when you yourself become a smoker!
  20. Internet radio should be free! by Anonymous Coward · · Score: 0

    SoundExchange is an independent, nonprofit performance rights organization that is designated by the U.S. Copyright Office to collect and distribute digital performance royalties for featured recording artists and sound recording copyright owners (usually a record label) when their sound recordings are performed on digital cable and satellite television music, internet and satellite radio (such as XM and Sirius). SoundExchange currently represents over 3,000 record labels and over 20,000 artists. Its members include both signed and unsigned recording artists; small, medium and large independent record companies; and major label groups and artist-owned labels. http://www.soundexchange.com/

      I am looking studying to be a recording engineer. I want to strive to be fair with my artist.

    1. Re:Internet radio should be free! by Anonymous Coward · · Score: 0

      http://www.soundexchange.com/ that is Corp domain not and originations domain.

      The Recording Industry Association of America (or RIAA) is a trade group that represents the recording industry in the United States. Its members consist of a large number of private corporate entities such as record labels and distributors, who create and distribute about 90% of recorded music sold in the US. It is involved in a series of controversial copyright infringement legal actions on behalf of its members.

      http://en.wikipedia.org/wiki/List_of_RIAA_member_l abels

        I am looking studying to be a recording engineer. I want to strive to be fair with my artist.

  21. Wide Response? by RetroGeek · · Score: 2, Interesting

    First of all I would never, ever, advocate this.

    However, as a talking point:

    Consider if the ripping of CDs was not done, as it currently is, in a small casual fashion. What if the entire Internet community made a concerted, extensive, and prolonged effort to copy and post CD tracks?

    Not just the few thousand or so which currently do it, but millions?

    Do you think that would get anyones attention?

    --

    - - - - - - - - - - -
    I am a programmer. I am paid to produce syntax not grammar. Deal with it.
    1. Re:Wide Response? by Anonymous Coward · · Score: 0

      What if we setup a site for people make online backups of their downloaded and cd/ripped songs? Stored those songs for them and allowed other people to "sample" tracks of others backups. Do you think we would go to jail?

  22. Understand the audience by zzatz · · Score: 3, Insightful

    Not the radio listening audience, the audience for the open letter.

    The author isn't trying to persuade the RIAA to be fair, that's impossible. That's why he wrote an open letter; a letter to the public ostensibly addressed to, but not really intended for, the RIAA.

    The music business and its RIAA front will not change their agenda. They've given Congress their marching orders, accompanied by bales of money. Politicians understand that voters often vote for the candidate with the largest budget for ads. And it's not just the direct campaign contributions, it's that most of the music business is owned by media companies, the companies that own the TV and radio stations, newspapers, and even web sites that politicians advertize with. Why do you suppose that newspapers NEVER challenge the RIAA spin on any story?

    The letter is intended for the public, and voters in particular. Politicans need cover before standing up to the RIAA. When voters write and call, that helps counter the RIAA fundraising. Float a fair and reasonable proposal, and shift the burden to the RIAA of explaining the RIAA plan.

    Write or call your elected officials. Many would like to do the right thing. Give them hope that doing the right thing won't end their careers.

  23. Same to you by TwilightXaos · · Score: 1

    It would seem the main upshot of Mr. Gathard's arguemnt is a higher amount of total royalties collected; thus more money for RIAA and Sound Exchange. This is intended to make it apealing to them.

    1. Re:Same to you by Pranadevil2k · · Score: 1

      I would say it's intended to make public the fact that alternatives exist that would be more profitable to the companies, and the fact that those companies will not take those alternatives is then proof that they don't give a crap about the money, and just want internet radio to stop all together.

  24. Feeding the trolls by ascendant · · Score: 1, Funny

    I, for one, am against fucking the RIAA. Considering how many other people they themselves have fucked, it's more than probable that they've caught more than a few nasty somethings along the way...

    --
    Do not attribute to malice that which can be easily explained by incompetence.
    1. Re:Feeding the trolls by ascendant · · Score: 1

      WTF flamebait? Did you mods even read the entire comment, or are you just mentally retarded? -1 to karma...

      --
      Do not attribute to malice that which can be easily explained by incompetence.
  25. Most of my music doesn't come from RIAA by grandpa-geek · · Score: 1

    My music is traditional (pre-1950) jazz, sometimes called Dixieland. Most of the CD's in my collection were purchased directly from the bands during live performances or came from labels that are not RIAA members. Money paid to RIAA's royalty collecting entity does not go to those bands or labels unless they join the entity at substantial cost, most likely exceeding the value of joining.

    Very little of the money paid to RIAA that is supposed to go to artists and songwriters actually gets to traditional jazz artists and songwriters (or their estates).

    Traditional jazz is so far off the music industry radar screen that the satellite radio channels (that I get to listen to sometimes when I fly) do not have traditional jazz channels. The closest they come is big band. None of what they play is from currently playing bands that you can see today in live performance; it is all archived from the 1930's and 40's, when some bands had jazz musicians in their bands and gave them solos.

    Before any proposal like this gets considered, there needs to be an alternative royalty entity established for non-RIAA music that ensures the money goes where it belongs.

  26. The real victims... by pravuil · · Score: 2, Insightful

    I listen to this station a lot (Radio Kansas). They have several local programs that can't be heard anywhere else. It's wonderful programming but the funding comes from community support (i.e.: contributions). As stated on their online streaming service:

    Music rights holders and streaming radio stations continue to negotiate fees and documentation procedures. The additional paperwork may include data on listener usage and musical performances that our current system simply cannot provide. We will restore our stream when we can do so in accordance with the new rules.

    The problem is that this type of music isn't what the majority wants (even though people in general should take more interest in the Arts). Half the time, what the majority wants isn't of any real value anyways. For a non-profit to be put into a position where they would have to consider data-mining, it would seem that they are forced into a position where they won't be able to afford it. The other tragedy is that it doesn't just affect the music that they broadcast, it's the news as well. Due to all of this action, it is forcing the entire radio stream to be taken off the internet which limits the scope of where NPR news can be broadcasted. You can go to the NPR website but regardless it does limit the scope of viewers who would be potential supporters and contributors to the originating station. The radio stations had a system that worked well with the RIAA before. Why does the RIAA have to complicate everything when they just need to keep it simple?

    You can still use your radio and surf for other local stations comparable to the content you are used to but living in Miami, Orlando, Wichita, Kansas City and Denver I had a hard enough time finding a decent station that carries similar programming. There is one exception and that is if you are a regular listener of any Clear Channel stations. At least they can guarantee the same crap anywhere you go.

  27. The important question... by Chmcginn · · Score: 1
    "Do you even know what electrolytes are?"

    "They're... what plants crave?"

    --
    Have you been touched by his noodly appendage?
  28. Don't forget... by Chmcginn · · Score: 1

    Clearchannel's Internet radio will have DRM, so it will be eligible for SoundExtortion^H^H^H^H^H^H^H^Hchange's DRM-discount program.

    --
    Have you been touched by his noodly appendage?
  29. Barack Obama has this to say about the RIAA by Anonymous Coward · · Score: 2, Interesting

    From: senator_obama@obama.senate.gov
    Date: Aug 11, 2007 5:50 PM
    Subject: Message from Senator Barack Obama
    To: f@1c0bird@gmail.com

      Thank you for conveying your strong feelings about the Recording
    Industry Association of America (RIAA) and their contributions to
    political candidates.

      First, as a candidate for president I do not accept contributions
    from any federal lobbyists or political action committees. Thus, I
    have not accepted any contribution from the RIAA for this campaign.

      Second, I fully understand your point that the RIAA's copyright
    initiatives are designed to protect the recording companies rather
    than songwriters and artists. That is because RIAA is a trade
    association that represents the recording industry. Its members
    consist of a large number of private corporate entities such as record
    labels and distributors.

      Two issues are at stake here: the negative effect of piracy on the
    recording industry, including both companies and artists; and the
    methods RIAA is employing to combat copyright infringement. As you
    note, the RIAA is involved in a series of controversial copyright
    infringement legal actions on behalf of its members. I, too, have
    heard that innocent parties have been swept up by this aggressive
    legal strategy, and I have spoken with RIAA officials about this
    concern. They contend that their method of investigation involves
    merely logging on to a file-sharing network, as any other user does,
    and that the very nature of the file-sharing system allows anyone to
    see who is illegally trading copyrighted works. This controversy
    merits further investigation.

      Intellectual property is an important export for the U.S. Making an
    effort to protect these creative works - including copyrighted music -
    is important to the thousands of people employed in the entertainment
    business, such as songwriters and artists, and to the country's
    economy generally. Our challenge is to address this issue in a manner
    that is fair to all parties.

      Again, thank you for writing. Please stay in touch.

      Sincerely,

      Barack Obama
      United States Senator

    In other words, "I might have accepted some bribes, but it's in my best interests not to answer the question, since I'm obviously not going to intervene and stop the RIAA madness".

  30. Sounds like a song... by Arthur+Grumbine · · Score: 1

    I heard you on my wireless network back in Ought Two
    Lying awake intent at browsing in on you.
    If it was dial-up it didn't stop you coming through.

    Ooh-ah oh

    RIAA killed the internet radio stars
    RIAA killed the internet radio stars
    etc.

    --
    Now that I think about it, I'm pretty sure everything I just said is completely wrong.
  31. And this is how the RIAA was formed by Anonymous Coward · · Score: 0

    And, strangely enough, the Mafia.

  32. SoundExchange has quashed broadcast podcast... by Kazoo+the+Clown · · Score: 1

    I don't know if anyone else here has noticed, but I had been listening to Podcasts of some music programs from broadcast radio-- as they essentially allowed me to time-shift programs that I otherwise would miss. Once SoundExchange extortion appeared, these podcast posts on the radio station websites dried up.

    However, while I'm disappointed I can't listen to those radio programs anymore, I'm thinking this could ultimately end up being a boon to free independent music streams that aren't connected to broadcast radio stations-- they could end up having an edge over "classic" broadcast music if they can find a way over the hurdle of verifying the rights to transmit that independent music. They end up in a position to be able to transmit independent music at no cost while the traditional channels have cough up the SoundExchange mafiaa, which IMHO may not be all that bad of a thing...

  33. I'd love to be... by msimm · · Score: 1

    Probably if I was still in my twenties. Something like this would either take massive amounts of work (read: loads of free time and thankless dedication) or lots of capital (which is the direction I think it would need to go, to sell it and provide a level of confidence to an industry that relies on lawyers and contracts).

    Not that I'm trying to be discouraging. It may well be easier then all that or maybe you've worked out a great way to make it happen (or maybe you're just dedicated enough). I already work too much (welcome web 2.0) and in my free time I run an arts and music site (among other things).

    But if you get things going or working up a good boiler-plate license I'd love to hear about it and I'd be glad to work with the artists and labels I already have contact with to see if they'd get on board.

    I'll scratch around a little, but there was a mid-sized label that had released a license to allow promotion of their artists. They provided a well thought out PDF that covered things like limitations, streaming (versus playlists, which can easily be bounced to disk using any number of tools). It was my first introduction to rights protection from a labels point of view (a little too much legalese for the artists which is part of why I think you need to package and "sell" the idea, which costs money typically).

    Anyway, if I don't hear from you I'll try to periodically check that URL. If you weren't in school your best route would be to try to setup a 501(c)3 (or the equivalent on your side of the pond) and seek funding. Live365 and Real are the companies that should be spearheading an initiative like this. The big broadcasters who have more to gain and claim more to lose. Their indifference (moaning and whining aside) I find perplexing, even a little annoying. Like their putting on a show, but to what end? I'm guessing nothing much better then what the RIAA is up to.

    --
    Quack, quack.