SoundExchange Offers Discount To Small Streamers SoundExchange has begun sending notices to some small webcasters offering to extend through 2010 the royalty rates set by the Small Webcaster Settlement Act. SoundExchange said it's acting in response to a request from Reps. Howard Berman and Howard Coble. "Reps. Berman and Coble believed that extending to 2010 the terms that small webcasters had from 1998 through 2005 was a reasonable way to give them some business certainty as they grow their services," said SoundExchange Executive Director John Simson. "These rates, however, mean no increase in royalty payments to artists and labels over 13 years."
Qualifying small webcasters -- those that bring in $1.25 million or less in annual revenue -- have until Sept. 14 to sign the agreement, which would let them pay 10%-12% of revenue rather than the per-performance royalties set by the Copyright Royalty Board in March. The deal also includes a usage cap that, says SoundExchange, will "ensure that this subsidy is used only by webcasters of a certain size who are forming or strengthening their businesses."
Qualifying webcasters that don't sign the agreement by Sept. 14 but continue to stream will be responsible for royalties under the CRB rates, retroactive to Jan. 1, 2006. The first payments under that royalties structure were due on July 15.
