Webcasters, labels still talking fees
Royalties solution being negotiated
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Move reopens the debate on a controversial payment that the record industry says is long overdue, but that Webcasters -- especially small indies -- worry could put them out of business.
House Judiciary Committee chairman F. James Sensenbrenner Jr. (R-Wis.) put the bill on the table last week in an effort to cool simmering tempers over the controversial royalty determination, but asked that it be pulled Tuesday after last-minute discussions with reps from both sides.
"The parties involved have assured me they will reach a comprehensive agreement by Friday that will be fair to Webcasters, record companies and recording artists as well as provide the economic certainty and stability necessary for Webcasters large and small to succeed," Sensenbrenner said in a statement. "I anticipate legislation codifying this agreement will be considered by the House next week."
Capping a yearlong debate, U.S. Librarian of Congress James H. Billington in July set Webcasting royalties at 0.07¢ per work streamed. The labels said the rate was far too low to reflect the value of their music, while the Webcasters said the costs were prohibitively high.
Sensenbrenner's measure was hailed by Webcasters last week as a stay of execution. Many have argued that the fees under the Billington proposal, accumulated over millions of streams monthly, would have amounted to more than their total annual revenues.
The Recording Industry Assn. of America was guardedly optimistic after Sensenbrenner's action Tuesday.
"We've been trying to close a deal with the Webcasters for months, and this is a great opportunity to find common ground," the major-label trade org said in a statement. "We are encouraged by the prospects of reaching a resolution."
Digital Media Assn. chief Jonathan Potter, whose org reps Webcasters, was not available for comment.
