Washington, DC (September 1, 2009)--SoundExchange and the Corporation for Public Broadcasting (CPB) have reached an agreement regarding webcasting royalty rates through 2015.
The agreement would allow CPB qualified stations, NPR member stations and NFCB participant member stations (along with NPR, American Public Media, Public Radio International and the Public Radio Exchange) to pay an alternate rate of royalties to artists and copyright owners whose recordings they stream over the internet.
This agreement--completed in late July but only announced in mid-August--is one of several similar agreements made under the Webcaster Settlement Act of 2009, which gave SoundExchange, the non-profit performance rights organization, the authority to negotiate alternative rates and terms to the prevailing royalty rates set by the Copyright Royalty Board in 2007. These modified rates, for qualified public radio stations, are intended to accommodate the special circumstances faced by this group of stations, SoundExchange said, and do not reflect a market value for music.
Under the agreement, CPB will pay SoundExchange a total of $2.4 million for the term 2011-2015, based upon anticipated system-wide usage and centralized administration. If usage exceeds expectations, additional payments will be made, which SoundExchange will distribute (along with the original lump sum) to the artists and rights owners who helped to create the music.
An agreement was also reached between SoundExchange and AccuRadio, Digitally Imported and radioIO, three so-called pureplay webcasters--those internet broadcasters who rely on music streaming rather than advertising for their revenue--in July.
SoundExchange announced that it had also made agreements with College Broadcasters, Inc., SIRIUS-XM, and with the National Religious Broadcasters Music License Committee. Terms and rates for each will be published in the Federal Register.
Corporation for Public Broadcasting