Thursday, October 3, 2002

Lawmaker Yanks Webcasting Bill to Permit Negotiations on Royalties By DAN CARNEVALE Washington A key lawmaker pulled a bill from consideration on Tuesday that would have delayed by six months a deadline for Webcasters -- including college radio stations that simulcast online -- to make royalty payments. Rep. F. James Sensenbrenner Jr., a Wisconsin Republican who is chairman of the House of Representatives Judiciary Committee, said he removed his bill from consideration because Webcasters and the recording industry have begun negotiations to determine new royalty rates and are expected to reach an agreement by Friday. The results of the negotiations will be given to Congress to consider codifying the new terms into law. But a group representing college radio stations said colleges are being left out of the negotiations. "We're not invited," said Will Robedee, vice chairman of Collegiate Broadcasters Inc. A provision in the Digital Millennium Copyright Act of 1998 states that the recording industry and artists should be compensated for music played over the Internet. Radio stations, including those run by colleges, that Webcast their music are required to pay a fee, but the rate was not set in the legislation. After months of tense negotiations and arbitration run by the U.S. Copyright Office, James H. Billington, the librarian of Congress, decided in June what fees Webcasters would pay to the record industry. But since then both sides have voiced disapproval with the set rates. Under the current rates, the average college station offering Webcasts -- a licensed noncommercial college station that simultaneously plays its over-the-air broadcasts online -- would pay two-hundredths of a cent per listener per song for every song it plays. For example, a college radio station that Webcasts 15 songs an hour, 365 days a year, 24 hours a day and attracts 200 online listeners an hour would pay the recording industry $5,256 per year. The first payments from Webcasters are due October 20. A bill proposed last week by Mr. Sensenbrenner would have given Webcasters until April 20 to make payments. Mr. Sensenbrenner said in a statement that he has pulled the bill, now that the affected groups are close to reaching a settlement. "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," the statement said. "I anticipate legislation codifying this agreement will be considered by the House next week." But Mr. Robedee said he doubts college radio stations will be taken into consideration when the new deal is reached. "College Webcasters are really a small piece of change," he said. Background articles from The Chronicle: Radio Silence: Fees Force College Stations to Stop Webcasting (8/16/2002) Rates for Online Broadcasting Worry College Radio Stations (7/12/2002) Easy-to-print version E-mail this article

College presidents circulate a statement decrying threats against Jewish students Scientists decode 2 genomes in breakthrough that could help halt malaria Report urges changes at community colleges to prepare students for high-paying jobs Law school settles professor's wrongful-termination suit for $1.2-million Government awards $8.5-million in grants to support nursing education and opportunities Students and faculty members turn to online library materials before printed ones, study finds Chinese institutions look toward distance education Lawmaker yanks Webcasting bill to permit negotiations on royalties