Thursday, October 25, 2012

Internet Radio Fairness Coalition Launches

Pandora and Clear Channel are among the founding members of the Internet Radio Fairness Coalition, a collection of companies, trade associations and advocacy groups announced today that are throwing their weight behind bills that aim to lower the rates webcasters pay for the performance of sound recordings.

According to a story at, the group's namesake is the Internet Radio Fairness Act of 2012, legislation that seeks lower webcaster royalties by changing how the Copyright Royalty Board (CRB) sets rates. The proposed legislation would replace the "willing buyer and willing seller" standard with the 801(b) guidelines used by satellite radio and cable. Using the 801(b) guidelines would allow the rates to be set using criteria that take into account the public interest, the return earned by copyright owners, the minimization of risk in the industry, and the interplay between creative contribution and capital investment.

Other founding members of the coalition include Consumer Electronics Association, terrestrial broadcaster Salem Communications, AccuRadio, Small Webcaster Alliance and Computer and Communications Industry Association.

Record labels and webcasters have different definitions of fairness.

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