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Licensing Problem Silences Internet Radio Stations

SEWilco writes "Hundreds of Internet radio stations that use SWCast.net for services have been affected by a shutdown triggered by SoundExchange, who claim lack of payment of royalty fees. Apparently SoundExchange has a new president, and this might be a factor in acting on several years of missing payments. In the meantime, SWCast radio stations suffer after paying to legally broadcast."

24 of 100 comments (clear)

  1. Anagram by oodaloop · · Score: 5, Insightful

    Silences is an anagram for licenses. That's all I have. But I found that more interesting than TFS.

    --
    Tic-Tac-Toe, Global Thermonuclear War, and relationships all have the same winning move.
    1. Re:Anagram by countertrolling · · Score: 2

      That's all you need... What more can be said?

      --
      For justice, we must go to Don Corleone
    2. Re:Anagram by Anonymous Coward · · Score: 5, Insightful

      So swcast is the villain here, not soundexchange.

      The true villain here is the US legal system, for threatening violent coercive force against those music providers who fail to pay a steep tax to a protected class of parasitic rentiers.

    3. Re:Anagram by Dachannien · · Score: 2

      In the UK, they spell it "Cilences".

    4. Re:Anagram by countertrolling · · Score: 2

      ...wish there was an analogous way to run a pirate radio station on the internet...

      Not until wireless mesh can get around the service provider problem.. But that doesn't mean you can't setup a powerful wifi and/or make a 'mini mesh' for your neighborhood and just stream your music collection and/or propaganda

      --
      For justice, we must go to Don Corleone
  2. That's quite a President and CEO by Anonymous Coward · · Score: 3, Funny

    Wow. SWCast's "President" looks like an emo 17-year-old teen who just pulled a suit jacket out of a laundry hamper.

    I'm surprised he's not wearing a fedora, too.

    1. Re:That's quite a President and CEO by Calydor · · Score: 2

      Doesn't he kinda look like Nicola Tesla on Sanctuary?

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      -=This sig has nothing to do with my comment. Move along now=-
  3. Lots of words, but nothing said. by Anonymous Coward · · Score: 5, Insightful

    Unfortunately, I don't think things bode well for SWCast members.... The post by the CEO was lots of words about his wonderful past and very little substance about addressing the take down notice by SoundExchange. The SWCast CEO failed to refute any of their claims or provide any reassurance that their service would be up soon (note that this may be on the advice of his lawyers, but he doesn't even mention that he is working with his lawyers to resolve it ASAP)

    He doesn't even apologize to customers for the disruption.

    1. Re:Lots of words, but nothing said. by Anonymous Coward · · Score: 4, Funny

      Thanks for summarizing that, I tried to read it but found myself unable to stop laughing at his photo.

  4. A sucker born every minute by Risen888 · · Score: 4, Insightful

    In the meantime, SWCast radio stations suffer after paying to legally broadcast.

    Well, I'm sorry, suckers, but that's what you get. If there's one lesson that New Media needs to get mercilessly beaten into its collective brain, it's that you do not attempt to play ball with Old Media. If anyone expected to get anything but fucked, shame on them.

    --
    Hey, I finally got my first freak! Took you long enough!
    1. Re:A sucker born every minute by robot256 · · Score: 4, Insightful

      Sure, this wouldn't have happened if there were no license fees at all, but at face value this doesn't appear to be a media industry issue. Based on Sound Exchange's post, it would appear that SWCast was a fraudulent operation, plain and simple. This is no different from a Ponzi scheme or any other fraud. People thought they were paying for a service and instead the money went into a black hole. The radio stations were stupid to sign up without checking they were in compliance, and now they should sue the crap out of SWCast.

    2. Re:A sucker born every minute by surgen · · Score: 5, Insightful

      This is not about "old media", this is about knowing that the person you contract with to provide a service is actually providing you that service (in this case license rights).

    3. Re:A sucker born every minute by JackSpratts · · Score: 3, Insightful

      lol. soundexchange is the fraudulent operation, albeit one abetted by congress.

    4. Re:A sucker born every minute by westlake · · Score: 5, Informative
      SoundExhange is not old media.

      SoundExchange is a non-profit corporation that collects and distributes the statutory royalties for performances in new media:

      - Digital cable and satellite television services (Music Choice and Muzak)
      - Non-interactive 'webcasters" (including original programmers and retransmissions of FCC-licensed radio stations by aggregators)
      - Satellite radio services.

      The split looks like this:

      50% to the sound recording copyright owmer.
      45% to the featured artist. (which can be a group or ensemble)
      5% to non-featured artists.

      The payout to date: $614 million.

      To about 46,000* registered performers and 6,000 SCROs - an SCRO can be an artist owned "label," of course.

      Registration is free, "membership" is free, but membership is not required. SoundExchange

      ____

      * In a population of 300 million, this may give you some notion of what it takes to become a professional musician with significant national exposure.

    5. Re:A sucker born every minute by BlueStrat · · Score: 3, Informative

      I've been browsing over some fo the Soundexchange's FAQ...wow, it sounds like they're wanting you to pay them if you have any sort of webcast. Maybe it is the wording....but almost sounds like if stream anything...even recordings YOU make yourself (musical or otherwise) they are wanting you to pay them a license???

      Can someone tell me if I'm reading that correctly or not?

      Yes, you're reading that right. The way the regulations are written, you must pay royalties to SoundExchange and then negotiate with them on reimbursement for works not copyrighted by one of the media/content cartel players.

      Even if you're streaming only your own totally original, personally-written & performed music., technically you must pay SoundExchange and then file with SoundExchange as the artist in question who is "owed", and hope you see the money back (minus SoundExchange's percentage, of course) before the next geologic age comes to pass.

      Basically it's a way to put a boot on the throat of non-cartel-associated streaming stations and independent artists/labels by buying legislation.

      It's all part of Big Media's efforts to prevent artists and their fans/customers from using the internet to do an end-run around Big Media's real-life, conventional distribution/publication/marketing channels that take cuts at each stage.

      Government will not help, as the internet and it's communications possibilities make government-types nervous, and so they're all for increasing internet restrictions, regulations, and controls in an effort to keep the populace under their control & surveillance while eliminating dissenting voices and economically-disruptive new individual-empowering distribution methods and technologies.

      Strat

      --
      Progressivism (aka US 'Liberalism'): Ideas so good they need a police/surveillance-state to enforce.
  5. Re:Piracy by cdrguru · · Score: 4, Insightful

    No it is far closer to say that if you need to pay taxes and instead you pay a guy on the streetcorner that says he will take care of everything for you... well, you have nobody to blame but yourself.

    At the very least some people should have checked up on what was going on. Apparently, the people paying SWCast didn't check to see that they were actually legitimate. They were not, so anyone that trusted them got screwed.

  6. Wow. Just WOW! by Frosty+Piss · · Score: 3, Informative

    Have you SEEN his pic? Good grief! http://www.swcast.net/

    --
    If you want news from today, you have to come back tomorrow.
    1. Re:Wow. Just WOW! by Angeret · · Score: 2

      Kerrrissst! Do you mind? I was eating, you inconsiderate sod!

  7. Re:Err no by whoever57 · · Score: 3, Interesting

    No, they weren't paying to legally broadcast.

    And that's sooo different to SoundExchange failing to pay artists because it "can't find them"!

    --
    The real "Libtards" are the Libertarians!
  8. Concerned over the word "license" by Openstandards.net · · Score: 2

    I keep hearing the word license used more and more to copyrighted works. I remember it beginning with software, which was a word that we distinguished as applying to the executable binaries, not the source code. This distinction remained for a long time, justifying the contractual relationship with using software that does not apply to reading books. Now, we hear licensing all the time to copyrighted works. This is creating an image that the owner of the copyright can unilaterally create a contractual relationship tied to what happens after the works are copied. In the context of music, is it justifiable to refer to these fees as a form of licensing? Should we be pushing back on the use of the term "licensing"?

    1. Re:Concerned over the word "license" by Anonymous Coward · · Score: 2, Informative

      Statutory license under the US copyright act is not related in any way to contract law. It is, if anything, a restriction of rights to the rights holder granting anyone who wishes to use the copyrighted material a license PROVIDED that they are in compliance with the terms. Which SWCast clearly were not.

      So, you can push back, but against what?

    2. Re:Concerned over the word "license" by DerekLyons · · Score: 2

      I keep hearing the word license used more and more to copyrighted works.

      No offense, but that speaks more to your inexperience or lack of knowledge than any change in how business is being or has been done. Nothing particular has changed, licenses with regards to IP have been around a long, long time.

  9. Racketeers by JackSpratts · · Score: 2

    nobody should be playing ball w/soundexchange. it's a racket, pure and simple. 40,000 internet radio stations were silenced overnight when these new broadcasting fees, abetted congress, aimed only at and deliberately hobbling internet radio, kicked in a decade ago.

    no station is "thriving" today despite claims by se to the contrary, unless they use streaming as a loss leader for other profitable ventures.

    between soundexchange and now data caps what could have been a new, exciting and truly democratic broadcasting medium where anyone could stream content to anywhere, has been throttled to near asphyxiation.

    internet broadcasters should simply shut down and walk away until congress and the music industry realize that the promotional value of streaming - like ota broadcasting - far outweighs any limited fees that accrue from performance royalties.

    - js.

  10. An Alternative by DERoss · · Score: 2

    "Pop" music is as ephemeral as a mayfly -- top 10 today and forgotten tomorrow. Listen instead to classical music. While recent performances might be under copyright, the music itself is no longer protected. By "classical music", I mean not only Bach and Beethoven but also music that was popular 50-100 years ago and is still popular. Streaming broadcasts of such music over the Internet do not seem impacted by the contention between SWCast.net and SoundExchange.

    By the way, see what I have to say about current copyright laws at the top of [http://www.rossde.com/music.html].