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From "Swim Taxi" <thegeniusiwas@hotmail.com>
Subject Re: Shutting Down
Date Mon, 23 Apr 2007 13:08:39 -0700

[Part 1 text/plain (3.0 kilobytes)] (View Text in a separate window)

I wrote to Senator Dianne Feinstein about Royalty Board decision.  This was 
the response I received.

Damian

-----------------------------------------------------------

Thank you for writing to me with your concerns about the Copyright Royalty 
Board's recent decision on the statutory rate for music webcasting. I 
understand your concerns and appreciate the opportunity to respond.

         Under the Copyright Royalty and Distribution Reform Act of 2004, 
Congress - at the behest of webcasters - created the Copyright Royalty Board 
which consists of three judges. By law, the judges are a venue of last 
resort and are required to periodically set rates for various statutory 
copyright licenses in the event that webcasters and copyright owners are 
unable to reach voluntary agreements. In the absence of an agreement, the 
judges set a rate designed to approximate the fair-market value that 
webcasters should pay to artists and performers for streaming their music 
for the years 2006-2010. The new rate that was established is less than a 5 
percent increase of the rate in effect from 1998-2005.

         Although a few webcasters have recently claimed that the process 
was unfair, it was not arbitrary and allowed representatives from all sides 
to make their cases. The judges began the proceedings in 2005, and heard 
testimony from dozens of witnesses and conducted a comprehensive review of 
tens of thousands of pages of evidence submitted by all interested parties 
over an 18-month period.

         While some webcasters may choose to pay this rate, independent 
negotiations between the parties are still possible and this new statutory 
rate would serve as the ceiling. Additionally, if it appears that the new 
rate will reduce the overall amount of webcasting - as well as the overall 
income from this stream of revenue - the copyright owners may still have an 
incentive to offer webcasters a rate less than the statutory rate.

         I am a strong believer in intellectual property rights and believe 
that artists and performers have earned the right to be fairly compensated 
for the broadcast of their works by webcasters who benefit - financially and 
otherwise - from their talents. Without fair compensation, these artists 
would not create their works.

         Once again, thank you for writing. Should legislation addressing 
this new rate or the rate-setting process come before the Senate, I will be 
sure to keep your concerns in mind. In the meantime, if you should have any 
additional questions or comments, please do not hesitate to contact my 
Washington, DC staff at (202) 224-3841.

Sincerely yours,

Dianne Feinstein
United States Senator

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