responses from the senate
April 23, 2007
After writing directly to Senator Boxer, and Senator Feinstein last week I received two responses today.
Senator Feinstein's response:
Dear Mr. Andersson:Thank you for writing to me with your concerns about the Copyright Royalty Board's recent decision on the statutory rate for music webcasting. I understand your concerns and appreciate the opportunity to respond.
Under the Copyright Royalty and Distribution Reform Act of 2004, Congress - at the behest of webcasters - created the Copyright Royalty Board which consists of three judges. By law, the judges are a venue of last resort and are required to periodically set rates for various statutory copyright licenses in the event that webcasters and copyright owners are unable to reach voluntary agreements. In the absence of an agreement, the judges set a rate designed to approximate the fair-market value that webcasters should pay to artists and performers for streaming their music for the years 2006-2010. The new rate that was established is less than a 5 percent increase of the rate in effect from 1998-2005.
Although a few webcasters have recently claimed that the process was unfair, it was not arbitrary and allowed representatives from all sides to make their cases. The judges began the proceedings in 2005, and heard testimony from dozens of witnesses and conducted a comprehensive review of tens of thousands of pages of evidence submitted by all interested parties over an 18-month period.
While some webcasters may choose to pay this rate, independent negotiations between the parties are still possible and this new statutory rate would serve as the ceiling. Additionally, if it appears that the new rate will reduce the overall amount of webcasting - as well as the overall income from this stream of revenue - the copyright owners may still have an incentive to offer webcasters a rate less than the statutory rate.
I am a strong believer in intellectual property rights and believe that artists and performers have earned the right to be fairly compensated for the broadcast of their works by webcasters who benefit - financially and otherwise - from their talents. Without fair compensation, these artists would not create their works.
Once again, thank you for writing. Should legislation addressing this new rate or the rate-setting process come before the Senate, I will be sure to keep your concerns in mind. In the meantime, if you should have any additional questions or comments, please do not hesitate to contact my Washington, DC staff at (202) 224-3841.
Sincerely yours,
Dianne Feinstein
United States Senator
and Sentor Boxer's response:
Dear Mr. Andersson:Thank you for writing to me regarding proposed changes to the assessment of royalty fees that Internet radio broadcasters pay to musicians and record labels. I appreciate hearing from you on this issue.
As you may know, the federal Copyright Royalty Board recently released its plan for charging online radio broadcasters for royalties.
As a member of the Senate Commerce Committee, which has jurisdiction over telecommunications issues, I am following this matter very closely. Please be assured that I will keep your views in mind should legislation on this issue be considered.
Again, thank you for writing to me. Please keep in touch with me about this and any other issue of concern to you.
Barbara Boxer
United States Senator
Senator Boxer's response was a very canned response that doesn't say much to me. Senator Feinstein's response speaks a lot more to the issue, and I don't find it very positive. Has anyone else out there received response's? If you are in California was the response exactly the same?
Posted by christopher andersson at 11:06 AM

