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Recent Copyright Office, Royalty Board Rulings Affect Aspects of Webcasting Rate-setting Proceeding, Lawyer Says

Recent Copyright Royalty Board (CRB) rulings adopting two separate settlements involving SoundExchange “wrap up some aspects” of CRB’s ongoing 2016-2020 webcasting rate-setting proceeding, while a separate Copyright Office ruling on the admissibility of direct license terms as possible benchmarks “could…

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affect aspects of the proceeding not resolved by the CRB’s orders,” Fletcher Heald lawyer Kevin Goldberg said in a blog post Wednesday. CRB adopted most of an agreement in late September between SoundExchange and College Broadcasters Inc. for the 2016-2020 term that sets the rates for digital performances of sound recordings by noncommercial educational webcasters (see 1509290050). CRB adopted a partial agreement last week between SoundExchange and a group of public radio stations led by NPR and CPB that mostly leaves in place rates and terms from the 2011-2015 term. That partial agreement allows public radio to continue to directly administer arrangements, “so eligible stations should be on the lookout for direct notice(s) from NPR or an NPR affiliated entity for guidance,” Goldberg said. Register of Copyrights Maria Pallante ruled in late September that the CRB isn’t prohibited from using Pandora’s past direct licensing deals with independent music label rights consortium Merlin and independent label Naxos as possible benchmarks for the 2016-2020 webcasting proceeding (see 1509210054). That ruling is likely to benefit webcasters since Pandora’s direct license deals “stand out as actual, concrete examples of what a willing buyer and willing seller in this marketplace would agree on -- in, fact, have agreed on -- as the actual value for digital performance of a sound recording,” Goldberg said. “In that regard they may provide the CRB more persuasive evidence of the proper rates to be set.”