Maybe not so bad?

>From AllAccess.com:

Mechanical Royalty Deal Reached, But Net Radio Still On The Hook

RADIO AND INTERNET NEWSLETTER Editor PAUL MALONEY has read the fine print of
the today's announcement of a royalty deal and concluded that the agreement
doesn't cover Internet Radio's royalty rate at all. The agreement between
DiMA (the DIGITAL MEDIA ASSOCIATION) and several music industry groups
solely covers mechanicals for on-demand services, such as streaming and
"limited download" services.

"It's about services like RHAPSODY in which listeners can request a specific
song right now -- and even for those services it only covers one of the
royalties involved, and not the critical one," he
wrote<http://textpattern.kurthanson.com/>.


Although the just negotiated rate does not directly impact non-interactive
webcasting services such as Internet radio, the pact does confirm that
"non-interactive, audio-only streaming services do not require reproduction
or distribution licenses from copyright owners." Translation: While Net
radio interests currently pay two performance royalties (one to
publishers/composers, the other to recording copyright owners/performers),
they are not liable for "mechanical" rights (ie: the reproduction of
recordings).

Bottom line: Net radio parties such as PANDORA are still on the hook
for royalty rates that could threaten their very existence.
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