Bill Would Codify Webcaster Royalty Reprieve

Webcasters are breathing sighs of relief today, after Jon Simson of SoundExchange told webcasters and Congresspeople yesteday that his organization will not enforce the new royalty rates on Monday.

It's hard to imagine him going back on his statements, but just to be sure, Chairwoman of the House Small Business Committee Nydia Velasquez (D-NY) and Ranking Republican Steve Chabot (R-OH) have introduced H.R. 3015, a bill that would officially delay the webcaster royalty due date for 60 days, as negotiations between SoundExchange and webcasters continue.

Jonathan Potter, executive director of the Digital Media Association (DiMA), released this statement in support of the bill:

"DiMA members appreciate the support of Chairwoman Velasquez and Rep.
Chabot, and we agree that negotiation is the preferred alternative. We arehopeful that this support and that of other Members of Congress will helpresolve the current rate dispute, as well as the long-term problem of royaltystandard parity [between internet radio and other mediums which pay lower (satellite) or no (terrestrial radio) such fees.]"

According to Billboard's sources, the bill doesn't stand much of a chance of passing because neither Representative is on the House or Senate Judiciary Committees, which exert the biggest influence on copyright-related law. No matter... SoundExchange needs to be on Congress's good side right now, so it's highly unlikely, if not impossible, that the organization would start enforcing the new rates after telling Congress it wouldn't.