Petteri Pyyny
23 Oct 2003 15:23
Third U.S. Circuit Court of Appeals in Philadelphia has upheld Copyright Office's earlier decision that traditional radio stations have to pay royalties for streaming their traditional radio broadcasts over the Net (process is called simulcasting).
Historically, American radio stations have had weird exception from royalties -- they don't have to pay anything for artists or record labels (they pay for songwriters though) for playing their music on radio, unlike most other radio stations in the world. And to complicate this issue, American Net radio stations have to pay such royalties. Now, the court fight was about this exemption rule and about applying it to simulcasting. Radio stations argued that their material that they air through radio-waves, is exempt from royalties even if broadcasted over the Net. This obviously puts smaller, Net-only broadcasters in losing side as they need to cough up to RIAA every time they play music on their station, while benemoths such as Clear Channel (world's largest radio station owner) don't have such costs involved.
"The DMCA's silence on AM/FM webcasting gives us no affirmative grounds to believe that Congress intended to expand the protections contemplated," the Philadelphia appeals decision reads. "The exemptions the (DMCA) afforded to radio broadcasters were specifically intended to protect only traditional radio broadcasting, and did not contemplate protecting AM/FM webcasting."
National Association of Broadcasters, representing the traditional radio stations, said that they will appeal the process and try to bring it to Supreme Court.
Source: Internet.com