Published by Randall Krause on Sunday, March 4, 2007 [Permalink] [Return to Top]
The Urgency for Comprehensive DMCA Reform
The DMCA is in dire need of reform. Lawmakers need to recognize that the Act has numerous technical deficiencies and contradictions which create unnecessary burdens for Webcasters. And these corrections must occur before "raising the roof" on royalty rates for Webcasters.
The following are just a couple of examples of activities that are commonplace to Webcasting that finally need to be properly codified.
• Legally you cannot mix, crossfade, or even voiceover the music within a Webcast because doing so violates the adaptation right in the sound-recording.
• Legally you cannot syndicate a music program across multiple Webcasts because that is a violation of the reproduction right and the distribution right in the sound-recording.
Of course the greatest shortcoming of the statutory Webcaster license, is that all transmissions are limited to the United States. It is imperative that SoundExchange finally renews its IFPI International Webcaster Agreement. We are one of the few remaining first-world nations that still does not recognize the global scope of Internet radio. Australia, Germany, France, Mexico, the United Kingdom, and numerous other countries are already onboard with the program. Where is the United States?
Furthmore, SoundExchange does not even bother to police Webcasters for compliance. Apparently they feel their only purpose is to be a designated collecting body -- not a performing-rights society. After all, the latter would suggest that the intent of SoundExchange is to protect the interests of its member collective a la ASCAP, BMI, and SESAC. Meanwhile, the pirate Webcasting community will thrive during this latest rate-surge with few (if any) grievances. As for the majority of legitimate online radio stations, they will be forced into oblivion.
For these and other reasons, I can say with great confidence that these higher royalty rates are not justified for our industry.
Randall Krause
Small Webcaster Community Initiative
randall@smallwebcaster.org
