SoundExchange Urges Copyright Board to Reject Calls to Reduce Music Artists' Royalties

Webcasters unable to present new facts, Artists and Others in Music

Community Calling for Fair Payment for Their Music

    WASHINGTON, April 2 /PRNewswire/ -- SoundExchange today filed with the
 Copyright Royalty Board (CRB) its opposition to the webcasters' motions for
 reconsideration submitted earlier this month in the webcasting rate case.
 The webcasters are attempting to convince the CRB to reconsider its
 decision regarding royalty rates paid to performing artists and record
 labels for the use of their sound recordings in connection with Internet
 radio. Noting that no new material facts or fresh evidence has suddenly
 materialized to give the CRB valid reason to revisit its decision,
 SoundExchange is asking that these motions be summarily dismissed.
     SoundExchange noted that over 14 months of proceedings the CRB reviewed
 thousands of pages of evidence and heard from almost 50 witnesses
 (including many experts) from all interested parties before issuing a
 comprehensive 115 page decision. "Just because you don't like the outcome
 of a fairly played game doesn't mean you should ask the referee to order
 the game replayed," said John Simson, Executive Director of SoundExchange.
 "Yes, Internet radio is important to the music community, but that doesn't
 mean that artists and record labels don't deserve fair compensation for
 their works."
     Without providing any fresh evidence to support their push to pay
 artists and labels less, some webcasters, who have enjoyed flat rates for
 seven years and were well aware of the CRB proceeding, are now crying foul.
 But the CRB, in objectively looking at the facts and the arguments
 presented by both sides, determined a fair market rate that artists should
 be paid for their work and creativity.
     Indeed, the judges characterized the webcasters' arguments regarding a
 benchmark against which to compare rates as "little more than a hasty
 attempt to revive and rehabilitate some similar arguments that failed to
 prevail" in the previous proceeding to set rates in 2001. The judges noted
 that the webcasters' testimony ignored "the substantial empirical evidence
 . . . that sound recording rights are paid multiple times the amounts paid
 for musical works rights in the markets for ringtones, digital downloads,
 music videos, and clip samples." The judges also pointed out that the
 webcasters' expert ignored the fact that record companies made significant
 and repeated investments in new creative works and found that to ignore
 such investments "makes little sense."
     Today's motions are not an indication that any action by the CRB is
 imminent, but represent routine maneuvers in these types of proceedings.
 "It is not at all unusual for parties in litigation to seek reconsideration
 following a court's decision when they are displeased with the outcome,"
 said Michael Huppe, General Counsel of SoundExchange. "We were not
 surprised that the webcasters filed these motions, or that the CRB
 permitted opposing parties to respond. However, permitting responses is by
 no means equivalent to changing their position. Given the extensive
 hearings, the large body of evidence and the thoroughness with which the
 Judges analyzed the entire case, we fully expect the judges to stand by
 their initial ruling."
     Simson noted that artists across the country are aghast at the negative
 reaction of some in the internet community to paying fair value for musical
 works. "The fact is we don't appreciate those who take music for granted,"
 said Simson. "Artists should be paid for the value of their hard work,
 their investment and their creativity. We value internet radio and are
 certainly interested in working with them to encourage a vibrant
 marketplace." Simson noted that it is a vocal minority that is making these
 unfounded claims about the new rates, and that artists and labels are
 supportive of internet radio and want to see it flourish.
     SoundExchange believes that when the new rates settle in, internet
 radio will continue to grow and prosper. With that success, artists will be
 fairly paid for their contribution to that success. "A lot of internet
 users think of music as a product created and generated by major labels
 with corporate megadollars and so think nothing of taking or paying very
 little to use this music," said artist Michelle Shocked. "But the evidence
 shows that a large majority of music is now created by independent artists
 with very small margins trying to earn a living and it's in that context
 that the recent decision to raise the internet broadcasting rates is seen
 as an encouragement to creativity and independence."
     For additional information please visit
 http://www.capwiz.com/soundexchange/home/
     CONTACT: Willem Dicke
               202-640-5857
 
 

SOURCE SoundExchange