Copyright Royalty Board

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The Copyright Royalty Board (CRB) is a U.S. system of three copyright royalty judges who determine rates and terms for copyright statutory licenses and make determinations on distribution of statutory license royalties collected by the U.S. Copyright Office of the Library of Congress. The board, made up of three permanent copyright royalty judges, was created under the Copyright Royalty and Distribution Reform Act of 2004, which became effective on May 31, 2005, when the Copyright Arbitration Royalty Panel system was phased out. These administrative judges are appointed by the Librarian of Congress.

United States Federal republic in North America

The United States of America (USA), commonly known as the United States or simply America, is a country comprising 50 states, a federal district, five major self-governing territories, and various possessions. At 3.8 million square miles, the United States is the world's third or fourth largest country by total area and is slightly smaller than the entire continent of Europe. With a population of over 327 million people, the U.S. is the third most populous country. The capital is Washington, D.C., and the most populous city is New York City. Most of the country is located contiguously in North America between Canada and Mexico.

United States Copyright Office

The United States Copyright Office, a part of the Library of Congress, is the official U.S. government body that maintains records of copyright registration in the United States including a Copyright Catalog. It is used by copyright title searchers who are attempting to clear a chain of title for copyrighted works.

Library of Congress (de facto) national library of the United States of America

The Library of Congress (LOC) is the research library that officially serves the United States Congress and is the de facto national library of the United States. It is the oldest federal cultural institution in the United States. The library is housed in three buildings on Capitol Hill in Washington, D.C.; it also maintains the National Audio-Visual Conservation Center in Culpeper, Virginia. The library's functions are overseen by the librarian of Congress, and its buildings are maintained by the architect of the Capitol. The Library of Congress claims to be the largest library in the world. Its "collections are universal, not limited by subject, format, or national boundary, and include research materials from all parts of the world and in more than 450 languages."

Contents

May 2007 webcasting royalty increase

On May 1, 2007, after 48 days of oral testimony (and 13,288 pages of written testimony), the Copyright Royalty Board set new rates for webcasting for the 2006–2010 License Period. [1] The rates are higher than the then-existing royalties paid for non-interactive webcasting. One component of rate increase was to remove the cap on the per-station/channel minimum fee of $US500, which used to be $2,500. [2]

United States dollar Currency of the United States of America

The United States dollar is the official currency of the United States and its territories per the Coinage Act of 1792. The act created a decimal currency by creating the following coins: tenth dollar, one-twentieth dollar, one-hundredth dollar. In addition the act created the dollar, half dollar, and quarter dollar coins. All of these coins are still minted in 2019.

The law requires rates to be based on the price that would be set by a marketplace of willing sellers and willing buyers. Much of the discussion focused on the definition of "willing seller". The Board decided that an individual record company was the basic unit of a "willing seller".

An issue that smaller webcasters raised was the desire to be assured that their fees would not exceed their revenue. The Board rejected this reasoning in their final decision because the ability of smaller stations to generate revenue from their operations has little or no bearing on the market value of the rights held by the copyright holders.

A coalition of webcasters that included National Public Radio (NPR) joined together to request a rehearing on the increase in rates. On April 16, 2007, the CRB rejected the appeal on the grounds that no new evidence was introduced. [3] [4]

License fee rates

Commercial webcasters, per play, per listener rate [5]

Year20062007200820092010
Rate (dollars)0.00080.00110.00140.00180.0019

There is a minimum annual fee of $500 per channel or station, payable in advance, against the above per-play fees.

For example, under the 2007 rate, 100 unique listeners of a transmission of a sound recording will cost the transmitter eleven cents. The same 100 listeners previously cost a service a little over seven-and-a-half cents from 1998 through 2005. If a service plays an average of 15 songs an hour, and a listener listens for 9.1 hours a week (the average amount according to recent Bridge reports), the listener would cost the service $0.66 a month.

Noncommercial webcasters [6]

Annual fee $500 per channel or station, up to a total of 159,140 aggregate tuning hours (ATH) per month. After this, the per-play rate for commercial webcasters applies. etc.

See also

The Copyright Arbitration Royalty Panel (CARP) system was a part of the United States Congress involved in making decisions regarding copyright royalties.

SoundExchange organization

SoundExchange is a non-profit collective rights management organization. It is the sole organization designated by the U.S. Congress to collect and distribute digital performance royalties for sound recordings. It pays featured and non-featured artists and master rights owners for the non-interactive use of sound recordings under the statutory licenses set forth in 17 U.S.C. § 112 and 17 U.S.C. § 114.

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Authors Guild professional organization for writers

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The Internet Radio Equality Act (IREA), originally introduced as H.R. 2060, is proposed legislation by Rep Jay Inslee (D) WA to nullify the May 1, 2007, determination of the Copyright Royalty Board (CRB) modifying the current webcast radio royalties and fees retroactively to January 1, 2006. The previous system charged radio stations a per performance rate of $0.000768, and it was that same rate from 1998-2005. The new system, effective May 1, 2007, increased that per-performance rate to the following levels: 2006=$0.0008, 2007=$0.0011, 2008=$0.0014, 2009=$0.0018, and 2010=$0.0019. This bill was introduced on April 26, 2007 by Rep. Jay Inslee (D-WA) and Rep. Donald Manzullo (R-IL) and has been cosponsored by over 100 members of the Congress. It was introduced in the Senate as S 1353 on May 10 by Ron Wyden (D-OR) and Sam Brownback (R-KS). The bill's proponents claim that "the majority of webcasters will go bankrupt and silent" when the Copyright Royalty Board's decision takes effect unless the bill passes.

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Digital Performance Right in Sound Recordings Act

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<i>United States v. ASCAP</i>

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References

  1. "Mar 6, 2007 web increases" (PDF).
  2. Jacqui Cheng (2007-03-20). "NPR fights back, seeks rehearing on Internet radio royalty increases" . Retrieved 2007-04-17.
  3. Eric Bangeman (2007-04-16). "Internet radio dealt severe blow as Copyright Board rejects appeal" . Retrieved 2007-04-17.
  4. Mark Hefflinger (2007-04-16). "Copyright Judges Reject Webcaster Appeals on New Royalty Rates" . Retrieved 2007-04-19.
  5. "Mar 6, 2007 commercial rates on page 47" (PDF).
  6. "Mar 6, 2007 non-commercial rates on page 61 and 62" (PDF).