Copyright owners, Webcasters and broadcasters blasted Copyright Arbitration Royalty Panel (CARP) report setting rates of $.07 per performance of streamed radio broadcasts (CD Feb 21 p8). In separate petitions seeking modification of CARP report, all parties characterized rates as unreasonable, albeit for different reasons. They also assailed panel’s decision to base its rate structure on RIAA’s licensing agreement with Yahoo.
Dugie Standeford
Dugie Standeford, European Correspondent, Communications Daily and Privacy Daily, is a former lawyer. She joined Warren Communications News in 2000 to report on internet policy and regulation. In 2003 she moved to the U.K. and since then has covered European telecommunications issues. She previously covered the U.S. Occupational Safety and Health Administration and intellectual property law matters. She has a degree in psychology from Duke University and a law degree from the University of Tulsa College of Law.
Copyright Arbitration Royalty Panel (CARP) ruling setting rates for Internet radio broadcasting (CD Feb 21 p8) managed to aggravate all sides and is raising privacy issues as well, panelists said Thurs. at D.C. Bar Assn. discussion on Webcasting and digital music. Report set rates of 0.014 cents to 0.14 cents per Webcast performance, plus ephemeral license fee of 9%, depending on type of media. Webcasting fees will be retroactive to effective date of Digital Millennium Copyright Act (Oct. 1998), and first payments will be due around June if CARP report is accepted by Copyright Office.
Proposal for applying compulsory licenses to on-demand streams and limited downloads has prompted strong criticism from some in online music arena. Comments, posted Tues. by Copyright Office, respond to office’s Dec. 14 request for comments on tentative agreement signed by RIAA, National Music Publishers’ Assn. (NMPA) and Harry Fox Agency (HFA) last Oct. Agreement for Internet music subscription services was to give RIAA, its member labels and new online services such as pressplay and MusicNet immediate access to every musical work authorized to be licensed by HFA, which then would issue licenses for both streamed music and limited downloads.
Contrary to popular myth, Disney isn’t trying to protect existing offline distribution system for its content, stop home taping or undermine the copyright law doctrine of fair use, Disney Exec. Vp-Govt. Relations Preston Padden said Thurs. Media giant is “eager for the day” when consumers can deal directly with it online rather than through middlemen such as video rental stores, he said. Furthermore, Padden said, “we have no interest” in preventing people from making copies of movies for their own use at home. Padden’s comments came during Warren Communications News audioconference on govt.’s role in digital rights management (DRM) and growth of broadband.
U.S. telecom industry group will meet next week to try to flesh out what American electronic numbering (ENUM) system should look like. ENUM, protocol standard developed by Internet Engineering Task Force (IETF), meshes telephony with Internet by linking phone numbers with domain name system (DNS). While IETF Request for Comment (RFC 2916) sets out basic framework for ENUM system, architecture that will drive it still is under discussion by several organizations here and abroad. One is ENUM Forum, U.S. industry consortium that meets Jan. 22-25 in Austin, Tex., to try to reach agreement on implementing RFC 2916, said Telcordia’s Gary Richenaker, chmn. of group.
Responding to Dec. 7 Copyright Office order squelching proposed settlement for royalty fees applicable to online streaming of radio programs, broadcasters and recording industry Wed. asked rate-setting panel to back their agreement. Move came during Copyright Arbitration Royalty Panel (CARP) convened to set rates covering digital performance rights in sound and ephemeral recordings for both Webcasters and FCC-licensed broadcasters who streamed their radio shows on Internet. CARP arbitrators are to submit their report Feb. 20.
While Bush Administration isn’t yet “frustrated to point of legislation” about lag in broadband deployment, it’s looking at ways to “generate some heat and maybe a little light” on issue, Commerce Undersecy. Phillip Bond said Mon. Challenge to greater broadband use is that despite its availability to 85% of U.S. homes, only about 10% have signed up, Asst. Secy. Bruce Mehlman said. Surveys point to several problems, he said: (1) Cost. (2) Concern over lack of “plug-and-play” equipment. (3) Belief among many that broadband is solely office service. (4) Lack of consumer dissatisfaction with current services. (5) Absence of killer content. Govt. can help promote broadband use by educating people about its value and launching e-govt. services, Mehlman said, but most important work must be done by technologists, engineers, entrepreneurs. Unlocking content is key, he said. Comments came at a Commerce Dept. Technology Administration workshop on “Understanding Broadband Demand: Digital Content & Rights Management.”
Office of Homeland Security’s proposal for GovNet has prompted interest from many key players in Internet and telecom arenas. More than 160 companies and one public interest group responded to request for information (RFI) issued by General Services Administration (GSA). Responses are being treated as proprietary information at request of companies, GSA spokesman said. However, he said, more information about submissions could be released in early Jan. GovNet project envisions “corporate intranet” on air-gapped network that federal agencies could use in addition to their existing Internet connectivity. RFI also asked industry to propose better ways of securing critical classes of internal govt. information from viruses and other outside attacks.
Far from encouraging innovation, broadband deregulation is “dangerous step” toward rebalkanization, Stanford Law School Prof. Lawrence Lessig said Fri. Internet’s creators embraced philosophy of “stupid networks, smart applications” that permitted Internet to develop as end-users chose, he said at Center for Digital Democracy panel on forecasting broadband’s future. That architectural principle of neutrality not only has important competition consequences, he said, but it lets innovators know their inventions will succeed based on what users -- not network operators -- think should succeed.
Members of copyright community will urge House lawmakers today (Oct. 1) to kill HR-2724, Music Online Competition Act (MOCA), saying it would hurt Internet marketplace. In letter released Fri., 15 groups said they “strongly oppose” bill floated in Aug. by Reps. Cannon (R-Utah) and Boucher (D-Va.). Groups are American Assn. of Ad Agencies, Assn. of American Publishers, Copyright Assembly, Interactive Digital Software Assn, Minor League Baseball, MPAA, National Baseball Assn., National Collegiate Athletic Assn., National Football League, National Hockey League, Office of Commissioner of Baseball, Professional Golfers’ Assn. of America, Professional Photographers of America, RIAA, Writers Guild of America, West. “America’s creative industries are investing huge resources in order to embrace e- commerce and the opportunities is presents,” Copyright Assembly members said. “The market is working but HR-2724 threatens to stifle America’s copyright industries by substituting government regulation on the Internet for business models and contractual arrangements that promote flexibility, experimentation and adaption to consumer demand.”