Is the RIAA Pulling a Scam on the Music Industry?
by DJ ProFusion
Tue Apr 24, 2007 at 11:27:29 AM PDT
The Internet radio game is rigged and the Recording Industry Association of America (RIAA) has rigged it in their favor.
DJ ProFusion's diary :: ::
There has been an understandable public outcry against the RIAA’s attempts to more than triple the sound recording copyright royalties on Internet radio. (See Save Internet Radio from Corporate Money Grab) One solution proposed by Webcasters is to just not play RIAA-member songs under the assumption that then they don’t have to pay the royalty to the RIAA’s collection body, SoundExchange; Webcasters would then just pay the independent artist the royalty.
This sounds fair and just because it is. However, the RIAA is not about being fair and just. The game is rigged and the RIAA has rigged it in their favor. The strategy of playing only non-RIAA songs won't work though because the RIAA has secured the right to collect royalties on all songs regardless of who controls the copyright. RIAA operates under the assumption that they will collect the royalties for the "sound recording copyright" and that the artists who own their own copyright will go to SoundExchange to collect at a later date.
Look at the information on SoundExchange.com (RIAA created SoundExchange) and see how it works. The RIAA has secured legal authority to administer a compulsory license that covers all recorded music.
"The recent U.S. Copyright Office ruling regarding webcasting designated SoundExchange to collect and distribute to all nonmembers as well as its members. The Librarian of Congress issued his decision with rates and terms to govern the compulsory license for webcasters (Internet-only radio) and simulcastors (retransmissions)." (http://soundexchange.com/faq.html#b4)
"SRCOs (sound recording copyright owners) are subject to a compulsory license for the use of their music...SoundExchange was established to administer the collection and distribution of royalties from such compulsory licenses taken by noninteractive streaming services that use satellite, cable or Internet methods of distribution."
(http://soundexchange.com/faq.html#a4)
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