Webcasting Rates and Terms Agreement Reached Between RIAA/SoundExchange and the Intercollegiate Broadcasting System

A group of non-commercial webcasters including American Council on
Education (ACE), Collegiate Broadcasters, Inc. (CBI), Intercolegiate
Broadcasting System (IBS), Harvard Radio Broadcasting (WHRB) and National
Religious Broadcasters Music License Committee (NRBMLC) reached an
agreement over the weekend with the RIAA/SoundExchange on rates and terms
for webcasting.

IBS Announcement

A low fixed price agreement has been reached that also provides for no reporting/recordkeeping for participating IBS Member radio stations/webcasters. The period covered by the agreement is October 1998 through December 31, 2004…

Here’s a PDF of the agreement.
Here are the rate specs from the “rates and terms” that were published today:

(1) $200 for the period beginning on October 28, 1998, and ending on
December 31, 1999 (which shall be treated as one year for purposes of
these Rates and Terms);
(2) $250 for each of the years 2000 through 2003; and
(3) $500 for 2004, except in the case of an NEE that is, or is affiliated
with, an educational institution with fewer than 10,000 enrolled students,
in which case the minimum fee shall be $250.
(b) Other Noncommercial Webcasters Transmitting a Single Channel. Except
as provided in Section 3(c) and subject to Section 4, each Noncommercial
Webcaster that is not an NEE shall pay nonrefundable minimum annual fees
as set forth below for all or any portion of a year in which it made or
makes any digital audio transmissions of sound recordings under the
section 114 statutory license (whether a Broadcaster Simulcast, an
Internet-only transmission or otherwise):
(1) $200 for the period beginning on October 28, 1998, and ending on
December 31, 1999 (which shall be treated as one year for purposes of
these Rates and Terms);
(2) $250 for 2000;
(3) $300 for 2001, except in the case of a Noncommercial Webcaster
substantially all of the programming of which is reasonably classified as
news, talk, sports or business programming, in which case the minimum fee
shall be $250;
(4) $350 for 2002, except in the case of a Noncommercial Webcaster
substantially all of the programming of which is reasonably classified as
news, talk, sports or business programming, in which case the minimum fee
shall be $250;
(5) $400 for 2003, except in the case of a Noncommercial Webcaster
substantially all of the programming of which is reasonably classified as
news, talk, sports or business programming, in which case the minimum fee
shall be $250; and
(6) $500 for 2004, except in the case of a Noncommercial Webcaster
substantially all of the programming of which is reasonably classified as
news, talk, sports or business programming, in which case the minimum fee
shall be $250.
(c) Noncommercial Webcasters Transmitting Multiple Channels.
Notwithstanding Section 3(a) or (b) as applicable, the nonrefundable
minimum annual fee shall be $500 for each year (as identified in Section
3(a)(1) through (3) or 3(b)(1) through (6)) for any Noncommercial
Webcaster that made or makes digital audio transmissions of sound
recordings on more than one channel or station of programming; provided
that –
(1) if the digital audio transmissions of sound recordings over any
channels or stations in excess of one consist only of “Incidental
Performances” (as defined in Section 9(f)), the nonrefundable minimum
annual fee shall be as provided in Section 3(a) or (b) as applicable;
(2) if substantially all of the programming of all of a Noncommercial
Webcaster’s channels and stations is reasonably classified as news, talk,
sports or business programming, the minimum fee shall be $250;


Here is the text of the document in case the link goes bad:
Rates and Terms Available to Certain Noncommercial Webcasters
1. General
(a) Availability of Rates and Terms. The rates and terms set forth herein
(the “Rates and Terms”) cover the making of public performances of sound
recordings by means of digital audio transmissions under the statutory
license of 17 U.S.C. 114 by “Noncommercial Webcasters” (as defined in
Section 9(e) hereof), and the reproduction of ephemeral recordings used
solely to facilitate such transmissions under the statutory license of 17
U.S.C. 112(e), during the period beginning on October 28, 1998, and ending
on December 31, 2004. A Noncommercial Webcaster may elect to be subject to
these Rates and Terms, in their entirety, by complying with the procedure
set forth in Section 2 hereof.
(b) Relationship to Other Provisions. Subject to Section 7, any
Noncommercial Webcaster relying upon the statutory licenses set forth in
17 U.S.C. 112 and 114 under these Rates and Terms shall comply with the
requirements of 17 U.S.C. 112 and 114, these Rates and Terms and other
governing provisions established by the Copyright Office. Any terms
determined in accordance with 17 U.S.C. 112 and 114 and applicable to the
collection and distribution by SoundExchange of payments under 17 U.S.C.
112 and 114 from commercial eligible nonsubscription transmission services
(e.g. terms relating to distribution of royalties by SoundExchange,
deductions from distributions, unclaimed funds, possible designation of
successors to SoundExchange in the event of its dissolution, retention of
records, verification, and confidentiality of payment information) shall
apply to payments under these Rates and Terms except to the extent
inconsistent with these Rates and Terms.
(c) Relationship to Other Agreements. These Rates and Terms are without
prejudice to, and subject to, any voluntary agreements that a
Noncommercial Webcaster may have entered into with any sound recording
copyright owner. Should there be any voluntarily negotiated rates and
terms arrived at between copyright owners and webcasters that are adopted
by the Librarian of Congress during 2003 as rates and terms for eligible
nonsubscription transmission services following publication of such rates
and terms in the Federal Register pursuant to 37 C.F.R. Sec. 251.63(b),
any Noncommercial Webcaster that qualifies for such rates may, by written
notice to SoundExchange, elect, for 2004, to pay royalties under the rates
and terms adopted by the Librarian in lieu of the rates and terms
applicable hereunder; provided that if a Noncommercial Webcaster does so,
it shall at the time its first 2004 payment is due under the terms adopted
by the Librarian, pay any additional amount that would have been due under
the rates and terms adopted by the Librarian for the period beginning on
October 28, 1998, and ending on December 31, 2003, in excess of the
royalties previously paid by the Noncommercial Webcaster for that period
under these Rates and Terms.
(d) CARP Proceedings. A Noncommercial Webcaster that elects to be subject
to these Rates and Terms agrees that it has elected these terms in lieu of
participating in a copyright arbitration royalty panel (“CARP”) proceeding
to set rates for the 2003-2004 period and in lieu of any different rates
and terms that may be determined through such a CARP proceeding. Thus,
once a Noncommercial Webcaster has elected these Rates and Terms, it shall
refrain from participating in any such CARP proceeding and can opt out of
these Rates and Terms only as provided in Section 1(c).
2. Election for Treatment as a Noncommercial Webcaster
(a) Election Process. A Noncommercial Webcaster that wishes to elect to be
subject to these Rates and Terms in lieu of any other royalty rates and
terms that otherwise might apply under 17 U.S.C. 112 and 114 for the
period beginning on October 28, 1998, and ending on December 31, 2004,
shall submit to SoundExchange a completed and signed election form
(available on the SoundExchange Web site at http://www.soundexchange.com)
by no later than the date 30 days after publication of these Rates and
Terms in the Federal Register. Notwithstanding the preceding sentence-
(1) if a Noncommercial Webcaster has not previously made digital audio
transmissions of sound recordings under the section 114 statutory license,
the Noncommercial Webcaster may make its election by no later than the
first date on which it would be obligated under these Rates and Terms to
make a royalty payment for the use of sound recordings under the section
112 or 114 statutory license; and
(2) an “NEE” (as defined in Section 9(d)) may make its election by no
later than October 15, 2003.
(b) Effect of Election or Nonelection. A Noncommercial Webcaster that
fails to make a timely election shall pay royalties as otherwise provided
under 17 U.S.C. 112 and 114 (the “Statutory Rate”). Subject to Section
1(c), if a Noncommercial Webcaster timely elects to be covered by these
Rates and Terms, the Noncommercial Webcaster shall thereafter be obligated
to pay royalties under and comply with the provisions of these Rates and
Terms through December 31, 2004, provided that such Noncommercial
Webcaster continues to meet the conditions for eligibility as a
Noncommercial Webcaster, as set forth in 17 U.S.C. 114(f)(5)(E)(i) (as
added by the Small Webcaster Settlement Act of 2002).
(c) Proof of Eligibility. A Noncommercial Webcaster that makes an election
pursuant to Section 2(a) shall make available to SoundExchange, within 30
days after SoundExchange’s written request at any time during the 3 years
following such election, sufficient evidence to support its eligibility as
a Noncommercial Webcaster and, if applicable, as an NEE. Any proof of
eligibility provided hereunder shall be provided with a certification
signed by the chief executive officer of the Noncommercial Webcaster, or
other person with similar management authority over the Noncommercial
Webcaster, certifying that the information provided is accurate and the
person signing is authorized to act on behalf of the Noncommercial
Webcaster.
3. Minimum Annual Fees
(a) NEEs Transmitting a Single Channel. Except as provided in Section 3(c)
and subject to Section 4, each NEE shall pay nonrefundable minimum annual
fees as set forth below for all or any portion of a year in which it made
or makes any digital audio transmissions of sound recordings under the
section 114 statutory license (whether a “Broadcaster Simulcast” (as
defined in Section 9(b)), an Internet-only transmission or otherwise):
(1) $200 for the period beginning on October 28, 1998, and ending on
December 31, 1999 (which shall be treated as one year for purposes of
these Rates and Terms);
(2) $250 for each of the years 2000 through 2003; and
(3) $500 for 2004, except in the case of an NEE that is, or is affiliated
with, an educational institution with fewer than 10,000 enrolled students,
in which case the minimum fee shall be $250.
(b) Other Noncommercial Webcasters Transmitting a Single Channel. Except
as provided in Section 3(c) and subject to Section 4, each Noncommercial
Webcaster that is not an NEE shall pay nonrefundable minimum annual fees
as set forth below for all or any portion of a year in which it made or
makes any digital audio transmissions of sound recordings under the
section 114 statutory license (whether a Broadcaster Simulcast, an
Internet-only transmission or otherwise):
(1) $200 for the period beginning on October 28, 1998, and ending on
December 31, 1999 (which shall be treated as one year for purposes of
these Rates and Terms);
(2) $250 for 2000;
(3) $300 for 2001, except in the case of a Noncommercial Webcaster
substantially all of the programming of which is reasonably classified as
news, talk, sports or business programming, in which case the minimum fee
shall be $250;
(4) $350 for 2002, except in the case of a Noncommercial Webcaster
substantially all of the programming of which is reasonably classified as
news, talk, sports or business programming, in which case the minimum fee
shall be $250;
(5) $400 for 2003, except in the case of a Noncommercial Webcaster
substantially all of the programming of which is reasonably classified as
news, talk, sports or business programming, in which case the minimum fee
shall be $250; and
(6) $500 for 2004, except in the case of a Noncommercial Webcaster
substantially all of the programming of which is reasonably classified as
news, talk, sports or business programming, in which case the minimum fee
shall be $250.
(c) Noncommercial Webcasters Transmitting Multiple Channels.
Notwithstanding Section 3(a) or (b) as applicable, the nonrefundable
minimum annual fee shall be $500 for each year (as identified in Section
3(a)(1) through (3) or 3(b)(1) through (6)) for any Noncommercial
Webcaster that made or makes digital audio transmissions of sound
recordings on more than one channel or station of programming; provided
that –
(1) if the digital audio transmissions of sound recordings over any
channels or stations in excess of one consist only of “Incidental
Performances” (as defined in Section 9(f)), the nonrefundable minimum
annual fee shall be as provided in Section 3(a) or (b) as applicable;
(2) if substantially all of the programming of all of a Noncommercial
Webcaster’s channels and stations is reasonably classified as news, talk,
sports or business programming, the minimum fee shall be $250;
(3) if a Noncommercial Webcaster that owns or operates multiple
over-the-air terrestrial AM or FM radio stations offers more than one
Internet channel or station on which substantially all of the programming
consists of Broadcaster Simulcasts, then –
(A) a nonrefundable minimum annual fee otherwise determined in accordance
with this Section 3(c) shall extend to only three such Internet channels
or stations offering Broadcaster Simulcasts, as well as associated
Internet-only channels (subject to Section 5);
(B) additional nonrefundable minimum annual fees shall be payable under
this Section 3(c) for additional groups of up to three Internet channels
or stations offering Broadcaster Simulcasts, as well as associated
Internet-only channels (subject to Section 5);
(C) each such group of up to three such Internet channels or stations, as
well as associated Internet-only channels (subject to Section 5), shall be
treated as a separate Noncommercial Webcaster for purposes of Sections
3(c)(2), 4 and 5;
(D) all such channels or stations offering Broadcaster Simulcasts in a
group shall be treated as a single channel or station for purposes of
Section 5;
(E) any additional channels or stations considered with the group for
purposes of Section 5 shall also be considered with the group for purposes
of Section 4; and
(F) accordingly, the Noncommercial Webcaster may offer two additional
Internet-only channels or stations with each group of up to three channels
or stations offering Broadcaster Simulcasts without triggering payments
under Section 5(b), but all of such channels or stations (up to a total of
five) shall be considered together for purposes of determining whether the
Noncommercial Webcaster exceeds the 146,000 Aggregate Tuning Hour
threshold in Section 4; and
(4) for purposes of determining the number of channels or stations of
programming offered by a Noncommercial Webcaster, an “archived program”
(as defined in 17 U.S.C. 114(j)(2)) that complies with the conditions in
17 U.S.C. 114(d)(2)(C)(iii)(I) and (II) shall not be considered a separate
channel or station of programming except in the case of a Noncommercial
Webcaster that exclusively makes digital audio transmissions of archived
programming.
(d) Payment in Lieu of Providing Reports of Use. All Noncommercial
Webcasters’ payments of nonrefundable minimum annual fees for each of 2003
and 2004 shall be accompanied by an additional payment of $50 in 2003 and
$25 in 2004 in lieu of the provision of reports of use of sound
recordings, as described in Section 7.
4. Usage Fees for 2004
(a) In General. Subject to Section 5, the nonrefundable minimum annual fee
payable under Section 3 for 2004 shall constitute full payment for digital
audio transmissions totaling not more than 146,000 “Aggregate Tuning
Hours” (as defined in Section 9(a)) per month. If, in any month during
2004, a Noncommercial Webcaster makes digital audio transmissions of sound
recordings under the section 114 statutory license in excess of 146,000
Aggregate Tuning Hours, the Noncommercial Webcaster shall pay additional
royalties for those digital audio transmissions in excess of 146,000
Aggregate Tuning Hours at the following rates, subject to an election as
provided in Section 4(b):
(1) $0.0002176 (.02176

3 thoughts on “Webcasting Rates and Terms Agreement Reached Between RIAA/SoundExchange and the Intercollegiate Broadcasting System

  1. Tom Poe

    Why do I not think this is good? I guess it’s because I am convinced that not one penny ever gets to the artists represented by the RIAA.
    Tom

Leave a Reply

Your email address will not be published. Required fields are marked *