FC: Congresscritters urge lower webcasting music rates

From: Declan McCullagh (declanat_private)
Date: Tue Apr 23 2002 - 08:31:25 PDT

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    Here's the letter from webcasters (my version of Word couldn't open it, but 
    it is a bit-for-bit copy of what I received):
    http://www.politechbot.com/docs/webcaster.music.letter.042202.doc
    
    Here's the letter from members of Congress (WARNING: 1.8 MB):
    http://www.politechbot.com/docs/congress.music.letter.042202.pdf.gz
    
    Background from Politech archives:
    http://www.politechbot.com/cgi-bin/politech.cgi?name=carp
    
    -Declan
    
    ---
    
        CALIFORNIA WEBCASTERS ASK CONGRESS     TO SAVE INTERNET RADIO
        FOR IMMEDIATE RELEASE
    
        Los Angeles - Twenty Members of Congress today including four from
        California in response to an arbitration panels recommendation of
        sound recording royalties for webcasters, urged the U.S. Library of
        Congress and the Copyright Office to ensure that the royalties do not
        devastate the webcast industry.  Executives from six California-based
        Internet radio companies asked the California Congressional delegation
        to support a fair royalty regime for Internet radio, as the current
        rate being proposed, webcasters say, would put them out of business.
    
    
        Representatives Lofgren, Honda, Lantos and Eshoo have taken a stand
        for webcasters today, said Val Starr of Choice Radio
        (www.choiceradio.com) a multi-channel webcaster located in San Bruno,
        California, And more importantly they are supporting music-loving
        consumers in California who want to access diverse music and culture
        on the Internet.
    
    
        The California webcasting community's opposition against the
        arbitrators proposal has widespread support. Thousands of webcasters
        and consumers have recently appealed to the Congress and the Register
        of Copyrights, who is authorized to review (and possibly reject) the
        proposed royalty rate.
    
    
        The proposed fees would definitely put us out of business," said Bill
        Goldsmith, the owner of popular Paradise, California based adult rock
        station RadioParadise.com (www.radioparadise.com). "If that happens,
        everyone loses: our listeners, the artists we play, and the record
        labels themselves.  We'd see two years of hard work and sacrifice go
        right down the drain.
    
    
        Webcasters want to pay royalties to recording artists, added David
        Landis, of Ultimate-80s, an all 1980s music format webcaster based in
        Los Angeles, CA (www.ultimate80s.com) But if super-high rates cause us
        to shut down, there will be no music, no royalties paid, and no money
        going to California recording artists.
    
    
        Goldsmith cautions against believing the press releases from the
        record industry which try to portray the fees as being affordable. "If
        you do the math, you'll see that not one webcaster - large or small -
        can cover these fees with their present levels of income."
    
    
        Both the Los Angeles Times and the San Jose Mercury News have issued
        stinging editorials rejecting the proposal and urging the Register of
        Copyrights to adopt a more reasonable approach.
    
    
        Several members of Congress from California are on the House and
        Senate Judiciary Committees in Washington, said Choice Radios Starr.
        Hopefully, Senator Dianne Feinstein and Representative Howard Berman,
        who are senior members of those Committees, will feel our local
        industrys pain and recognize that the demise of small webcasters is
        bad for the Internet, bad for consumers and bad for recording
        artists.
    
    
        California is the birthplace of new media and a haven for cultural
        diversity, said Zack Zalon of Los Angeles, CAs Radio Free Virgin
        (www.radiofreevirgin.com), a webcasting station offering over 40
        channels of various genres of music.  California lawmakers must
        support the independence, diversity and creativity that online radio
        represents. Furthermore, in the absence of legitimate entertainment
        options such as online radio, pirate services will flourish and deny
        artists the dues that were all fighting for.
    
    
        Contact:       David Landis at Ultimate-80s (323)782-8008
    
                       Bill Goldsmith at Radio Paradise
        (530)872-4993,(530)514-3173
    
                    Zack Zalon of Radio Free Virgin (323) 904-6155
    
                    Val Starr at Choice Radio (650) 872-2364
    
                    Rusty Hodge at Soma FM (415) 826-9500
    
                          John Jeffrey at Live 365 (650)345-7400, ext. 107
        
    
    
    
    
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