IMPORTANT WEBCASTING UPDATE

Last Updated on September 27, 2008 by askcbiorg

UPDATE: The bill has been approved in both houses of Congress. This bill makes some aspects of negotiation a little easier, but does not signal that a compromise is imminent. Details concerning this development will follow.

The bill referenced below has passed the House, but it still needs to be passed in the Senate.  There needs to be one simple change in the Senate version of the bill and YOU need to make a phone call to make it happen!

Please call each and everyone of the Senators at http://judiciary.senate.gov/about/members.cfm and ask them to pass the house version of this bill with one simple amendment.  That amendment would allow non-commercial webcasters to submit a settlement by the end of the statuatry required settlement conference (37 CFR 351.7).   I know this sounds a little complicated, but just make the calls and tell them that noncommercial webcasters need an extended deadline for submitting a negotiated settlement.

CBI is working diligently to  protect the interests of its members.  You can support our efforts by making the phone calls and by urging others to do the same via your email lists, blogs, myspace accounts, facebook accounts and web pages.

————————

A bill (HR 7084) was introduced into the House today regarding webcasting. It appears to be on a fast track. The bill is called the “Webcaster Settlement Act of 2008”. A copy of the bill is available on the CBI web site.

This bill essentially duplicates the Small Commercial Webcaster Settlement Act of 2002 (SWSA), but expands the scope of those who may enter into the agreement beyond small commercial webcasters and noncommercial webcasters to include commercial and noncommercial webcasters. In short, this allows SoundExchange (SX) and webcasters to enter into a settlement that would cover all copyrighted sound recordings. Any agreement entered into by webcasters and SX prior to the passing of this legislation would not encompass recordings by artists and copyright holders that are not members of SoundExchange. Even if passed, this bill would not solve all the issues that webcasters have with SX, but it does alleviate a major concern of many college stations who webcast music by those who are not members of SX. Another item to note is that this bill would allow a negotiated settlement to run through 2016. If a settlement is reached that runs through 2016, it would alleviate the need for parties to enter the arbitration process at beginning of 2009 as currently required by law.One other difference here is that the SWSA provided a staggered settlement deadline. The first deadline was for small commercial webcasters in December of 2002 and a second deadline was May 31, 2003. This allowed for time for the various entities to enter into substantially different agreements, with the later being negotiated right up to the deadline, over a holiday weekend. This bill puts the deadline for all webcasting settlements at the same time, December 15, 2008**. Given the time constraints for negotiations, potential for more parties wanting to negotiate a settlement than in 2002-3, the stonewalling of SX in the negotiation process, the other business on the hill, and a pending recess, it is difficult to gauge how optimistic one should be about the potential of this bill passing both houses, being signed into law and the ability to reach a settlement.

The NAB appears to have its own thoughts on the news.

NAB has concerns related to Congress attempting to fast-track a bill introduced less than 24 hours ago that could have serious implications for broadcasters, webcasters, and consumers of music. NAB spent more than a year trying to work out an equitable agreement on webcasting rates, only to be stonewalled by SoundExchange and the record labels. We will continue to work with policymakers on a solution that is fair to all parties.” ( (CNET)

We will continue to work on this issue.  For more information, contact Will Robedee at 713-854-1737.

** The version of the bill that passed the House changed the deadline for negotiated settlements to February 15, 2009 for all webcasters.