Full article with links and comments from the Daily Kos blog:
http://www.dailykos.com/story/2007/4/24/141326/870
RIAA Pulling a Scam on the Music Industry?
by DJ ProFusion
Tue Apr 24, 2007 at 11:27:29 AM PDT
The Internet radio game is rigged and the Recording Industry Association
of America (RIAA) has rigged it in their favor.
* DJ ProFusion's diary :: ::
*
There has been an understandable public outcry against the RIAA’s
attempts to more than triple the sound recording copyright royalties on
Internet radio. (See Save Internet Radio from Corporate Money Grab) One
solution proposed by Webcasters is to just not play RIAA-member songs
under the assumption that then they don’t have to pay the royalty to the
RIAA’s collection body, SoundExchange; Webcasters would then just pay
the independent artist the royalty.
This sounds fair and just because it is. However, the RIAA is not about
being fair and just. The game is rigged and the RIAA has rigged it in
their favor. The strategy of playing only non-RIAA songs won't work
though because the RIAA has secured the right to collect royalties on
all songs regardless of who controls the copyright. RIAA operates under
the assumption that they will collect the royalties for the "sound
recording copyright" and that the artists who own their own copyright
will go to SoundExchange to collect at a later date.
Look at the information on SoundExchange.com (RIAA created
SoundExchange) and see how it works. The RIAA has secured legal
authority to administer a compulsory license that covers all recorded music.
"The recent U.S. Copyright Office ruling regarding webcasting designated
SoundExchange to collect and distribute to all nonmembers as well as its
members. The Librarian of Congress issued his decision with rates and
terms to govern the compulsory license for webcasters (Internet-only
radio) and simulcastors (retransmissions)."
(http://soundexchange.com/faq.html#b4)
"SRCOs (sound recording copyright owners) are subject to a compulsory
license for the use of their music...SoundExchange was established to
administer the collection and distribution of royalties from such
compulsory licenses taken by noninteractive streaming services that use
satellite, cable or Internet methods of distribution."
(http://soundexchange.com/faq.html#a4)
SoundExchange (the RIAA) considers any digital performance of a song as
falling under their compulsory license. If any artist records a song,
SoundExchange has the right to collect royalties for its performance on
Internet radio. Artists can offer to download their music for free, but
they cannot offer their songs to Internet radio for free.
(http://soundexchange.com/faq.html#a7)
So how it works is that SoundExchange collects money through compulsory
royalties from Webcasters and holds onto the money. If a label or artist
wants their share of the money, they must become a member of
SoundExchange and pay a fee to collect their royalties
(http://soundexchange.com/faq.html#b6). But, and this is a big "but,"
you only get royalties if you own the sound recording copyright. If you
are signed to a major label, chances are you don’t. Even if you do own
the copyright to your own recording of your own song, SoundExchange will
collect Internet radio royalties for your song even if you don’t want
them to do so.
Go to the SoundExchange site: http://plays.soundexchange.com/... and
take a look at the hundreds of indie labels for whom SoundExchange
claims they have collected royalties. Enter some of those label names on
http://www.riaaradar.com/... and notice how few are actually members of
the RIAA. Contact the label and ask if they are a member of RIAA and
they almost certainly aren’t and may not even be aware that
SoundExchange is collecting royalty fees on their music.
And what exactly is SoundExchange doing with the money they have
collected for those hundreds of labels that must have thousands of songs???
--
David Solomonoff, President
Internet Society of New York
[EMAIL PROTECTED]
isoc-ny.org
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