RIAA OPENS UP NET AIRWAVES
The company joins the likes of musicmusicmusic, OnAir (http://www.com/), www.cornerband.com, Yahoo! and JamRadio as companies which have signed licenses to webcast with Hilary and company rather than pursue group arbitration. Inside sources say companies are paying up to 100k per month for the privilege, too.
Kickworks gets the rights to the recordings of all RIAA members, while consumers will be able to use these songs in online radio broadcasts. The company will pay royalty fees as well.
RIAA Sr. VP Business Affairs Steve Marks told CNETNews: "It certainly demonstrates our commitment to licensing and encouraging the use of the music on the Internet and developing innovative ways to do so."
Kickworks plans to launch its radio broadcast service by the end of the year. The service lets people download software to create their own online broadcasts for others to listen to. Chief Exec Matt Hackett says, although they hope to offer the service for free, they will gain revenue from targeted advertising streams inserted between songs. They would also charge a license fee for website operators who want access to their technology.
Wonderers continue wondering why companies are signing up with the RIAA for a compulsory license that is available by law simply by submitting a one-page document to the Copyright Office. Still others question why webcasters would choose to break ranks and negotiate alone with an industry collective, rather than arbitrate jointly with the likes of MTV, RealNetworks, Spinner, etc. Are there some other benefits not made public to inking with the industry cabal? No license issued by the RIAA can provide more rights than the one granted by law. The trade org’s anti-trust exemption is limited to the scope of the statutory license.
The RIAA’s Karen Allen explained webcasters are being charged 4/10ths of one cent per performance (per person who listens to the recording) or 15% of the service’s gross revenues from such transmissions. "While we are disappointed that some webcasters have chosen to arbitrate rather than negotiate, we look forward to participating in the arbitration to ensure that royalty rates fairly compensate the creators of sound recordings for the use of their music."
Those arbitration hearings are scheduled to begin in late July 2001, with a rate expected to be announced by early 2002.
