Journalism Issues

(Washington Post, 9 December 2000)

ONLINE MUSIC FEES ORDERED

The Webcasting industry was dealt a serious blow when the
Library of Congress's Copyright Office, citing the 1998 Digital
Millennium Copyright Act, ruled that radio stations must pay
another set of royalties to musicians and record companies when
distributing their music on the Internet. The Copyright Office
also determined that Webcasters do not qualify as interactive
services. Some 4,000 radio stations are expected to be affected
by the ruling. The Webcasting industry, citing its own
interpretation of the Digital Millennium Copyright Act, argued
that it was not required to pay an additional set of fees for
playing music on the Web. Record companies and musicians took
the opposite stance. Friday's ruling represents "the right
conclusion as a matter of law and sensible policy," said Hilary
Rosen, president of the Recording Industry Association of
America. Alex Alben, vice president at RealNetworks, predicted
that the new fees could help spark an alliance between
broadcasters and independent Webcasters.

// posted by newshare @ 11:31 PM