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April 16, 2007

Stone-deaf CRB Denies Rehearing for Webcasters

Posted by
Trevor Moyer

Breaking news from Washington:

The judges of the Copyright Royalty Board (CRB) having reviewed several submissions from a number of parties have now DENIED ALL MOTIONS for ANY rehearings to address the concerns of Internet radio webcasters.

Selected excerpts from the Order Denying Motions For Rehearing follow, emphasis mine:

Having reviewed all motions, responses to those motions, and written arguments, the Judges now deny all such motions.

[..]

Such exceptional cases require the movant to show that an aspect of the determination is erroneous, without evidentiary support, or contrary to legal requirements. The parties made no such showing.

Such motions should be granted only where (1) there has been an intervening change in controlling law; (2) new evidence is available; or (3) there is a need to correct a factual error or prevent manifest injustice.

The parties that request a rehearing in this motion do so based upon categories (2) and (3). We find, however, that none of the moving parties have made a sufficient showing of new evidence or a clear error or manifest injustice that would warrant a rehearing.

So according to the CRB, their decision, which will effectively wipe out almost all of U.S.-based Internet radio - thousands of small webcasters, college radio streaming, NPR on the net, and services like Pandora to name a few categories - is NOT a manifest injustice. Wow.

[..]

While some parties purport to offer new evidence that was not presented during the proceeding, we are unconvinced that this evidence was in fact newly discovered after the proceeding. Indeed, it appears that all evidence discussed in the motions had either been discovered during the proceeding or could have been discovered during the proceeding, with reasonable diligence. Therefore, we cannot grant the parties’ motion for rehearing based on new evidence.

[..]

In absence of an adequate showing for new evidence, the parties’ arguments in their respective motions amount to nothing more than a rehash of the arguments that the Judges considered in the Initial Determination. As such, the motions do not present the type of exceptional case that would warrant a rehearing or reconsideration. Therefore, we deny the parties’ motions for rehearing or reconsideration.

CRB translation: SoundExchange told us you would say this will kill you, and you did say it. And now you’ve said it again. Yadda yadda… Got anything new?

[..]

Other parties request that the Judges stay the implementation of certain of the rates and terms established in the Initial Determination until all administrative appeals and judicial review are complete.

[..]

Moreover, Section 803(c)(2)(E)(ii) of the Copyright Act states that “[t]he pendency of a motion for a rehearing under this paragraph shall not relieve persons obligated to make royalty payments who would be affected by the determination on that motion from providing the statements of account and any reports of use, to the extent required, and paying the royalties required under the relevant determination or regulations.”

[..]
Moreover, Congress determined that these rates would go into effect, notwithstanding any pending motions for rehearing. Finally, Congress set forth the remedy that would apply should those rates later be determined to result in an overpayment or an underpayment of royalties. The provisions of these sections are clear and we will follow the statute. As a result, the motions for a stay are DENIED.

CRB translation: Don’t blame us for refusing to hear your pleas. Blame copyright law. And blame Congress. Not our problem.

CRB to Internet radio: Pay SoundExchange now.

Pull out your wallets, go get a loan from a bank,

or fold up your tent and die. We really don’t care.

Download: CRB Order Denying Motions for Rehearing (pdf)

h/t: Save Net Radio.org


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6 comments for this post.

  1. Pingback from the durnMoose blog » junkyard - april 17, 2007: blah blah blah day, on April 17th, 2007 :

    […] dealt what was likely to be a deathblow to internet radio… today comes word that they have denied any rehearings on the decision which means the new royalties will go into effect may 15th… more info on this decision can be […]

  2. Comment from Kit Kellison on April 17th, 2007 :

    It is obvious that the manifest injustice here is that right and wrong and the public good doesn’t come attached with enough high-powered lawyers with golden souls and deep enough pockets to get a point across.

    Growing segments of the music-listening public will, however, still be bored out of our skulls with the poor content offered by an artfully unmotivated broadcast radio and the woefully inept recording industry that continue to spoon-feed an art hungry populace the top-forty trash they continue to rewarm and regurgitate.

    My advice is to support live music in all its forms. Buy that local band’s CD’s t-shirts, pay the cover fees that go to keeping the bands alive. It truly is one of the only ways left for the masses to make a personal dent in the systematic suffocation of art culture.

    Kit Kellison
    co-owner Off Broadway (music venue)
    feature writer for St. Louis Sound Magazine

  3. Comment from Casey Carpenter on April 17th, 2007 :

    This is horrible news and I’m not sure why I am surprised. I listen to Pandora almost daily and this will leave a large void.

    Good luck to the guys over there, especially Tim.

  4. Trackback from Hornswaggled on April 17th, 2007 :

    Its so hard to say goodbye. Internet music died today….

    With a stunning ruling the CRB denied all motions to keep internet radio in the US afloat. This affects all US based internet radio and specifically the much loved Pandora music service.

    Read more here: SaveNetRadio.org

    ……

  5. Comment from Randall on April 17th, 2007 :

    A coalition of small Webcasters, in cooperation with several digital music services including Live365 and SWCast Network, yesterday morning announced their intent to form a U.S. trade association.

    The official news release even made it to the front page of Billboard Publicity Wire.

    Let’s just hope that it’s not too late to effect some change in this whole ordeal. I’m crossing my fingers.

  6. Comment from Jim-A on April 24th, 2007 :

    I have a question. What would happen if broadcasts continue and the paying of royalties is boycotted? What could authorities do to anyone protesting in this way?