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Advanced Copyright Issues on the Internet - Fenwick & West LLP

Advanced Copyright Issues on the Internet - Fenwick & West LLP

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New Subscripti<strong>on</strong> Services<strong>Internet</strong> Streaming ofAM/FM Broadcastsprogramming, such as news, talk, sports or businessprogramming. For such n<strong>on</strong>-music channels and stati<strong>on</strong>s,<strong>the</strong> licensee must pay 0.0762 cents per aggregate tuninghour.Minimum Annual Fee: $2,500Ephemeral Recordings: These rates will be deemed toinclude <strong>the</strong> royalties payable for ephemeral recordingsOpti<strong>on</strong>s of paying royalties as follows:Per Performance Opti<strong>on</strong> – 0.0762 cents per performancefor digital audio transmissi<strong>on</strong>sAggregate Tuning Hour Opti<strong>on</strong> – 1.17 cents per aggregatetuning hour for all channels and stati<strong>on</strong>s except channelsand stati<strong>on</strong>s where <strong>the</strong> programming c<strong>on</strong>sists of n<strong>on</strong>-musicprogramming, such as news, talk, sports or businessprogramming. For such n<strong>on</strong>-music channels and stati<strong>on</strong>s,<strong>the</strong> licensee must pay 0.0762 cents per aggregate tuninghour.Percentage of Subscripti<strong>on</strong> Revenues Opti<strong>on</strong> – 10.9% ofsubscripti<strong>on</strong> service revenue, but in no event less than 27cents per m<strong>on</strong>th for each pers<strong>on</strong> who subscribes.Minimum Annual Fee: $2,500Ephemeral Recordings: These rates will be deemed toinclude <strong>the</strong> royalties payable for ephemeral recordingsStreaming: 0.88 cents per aggregate tuning hourEphemeral Recordings: The rate for ephemeral recordingsby business establishment services is 10% of grossproceeds.Webcasters wishing to take advantage of <strong>the</strong> SWSA Agreement were required to submita completed and signed electi<strong>on</strong> form to SoundExchange no later than 30 days after <strong>the</strong>publicati<strong>on</strong> of <strong>the</strong> rates and terms in <strong>the</strong> Federal Register, or for those webcasters who had notyet made a digital audio transmissi<strong>on</strong> as of such publicati<strong>on</strong>, no later than <strong>the</strong> first date <strong>on</strong> which<strong>the</strong>y would be obligated to make royalty payments.On August 21, 2003, <strong>the</strong> <str<strong>on</strong>g>Copyright</str<strong>on</strong>g> Office published proposed rates and terms forn<strong>on</strong>commercial webcasters who elected not to operate under <strong>the</strong> rates and terms set under <strong>the</strong>SWSA Agreement. 2217 Those proposed rates and terms were <strong>the</strong> same as those that were set for<strong>the</strong> period ending December 31, 2002 in <strong>the</strong> Order of <strong>the</strong> Librarian of C<strong>on</strong>gress published July 8,2002 at 67 Fed. Reg. 45239. On Feb. 6, 2004, <strong>the</strong> <str<strong>on</strong>g>Copyright</str<strong>on</strong>g> Office adopted <strong>the</strong> proposed ratesand terms as a final rule for <strong>the</strong> 2003 and 2004 statutory licensing period. 22182217 68 Fed. Reg. 50493 (Aug. 21, 2003).2218 69 Fed. Reg. 5693 (Feb. 6, 2004).- 482 -

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