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Published by Randall Krause on Monday, March 5, 2007  [Permalink] [Return to Top]

Retraction of Royalty Rates Is Unlikely

There appears to be a misconception circulating the Internet that through sufficient lobbying efforts on Capitol Hill, the 2006-2010 royalty rates can somehow be repealed.

While the intention is certainly admirable, this level of judiciary influence is next to impossible. The outcome of a legal proceeding cannot be annulled by Congress (unless it is proved to be counter to some legal statute or precedent). And even then, some separate litigation would be required.

The appellate court may be able to partially reverse the previous determination or at least forestall any new decisions in light of other evidence. Additionally, the parties involved could reach a settlement. But this is ultimately a closed tribunal not an open forum. There is virtually no public input accepted during the remainder of this case. Once the final ruling is made, and the rates are published in the Federal Register, then they will become official.

The best course of political action is to encourage lawmakers to provide a mechanism under statute by which Webcasters could again pursue negotiations with SoundExchange for separate royalty rates during the present term.

Randall Krause
Small Webcaster Community Initiative
randall@smallwebcaster.org

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