SoundExchange and DiMA Agree to Limit Minimum Per-Station Fees

SoundExchange, which collects online radio royalties, and DiMA (Digital Media Association), representing some of the larger webcasters, reached an agreement during a meeting in New York earlier today. The deal formalizes their previous near-agreement to limit $500 per-station minimum royalty fees to a total of $50,000 per year.

This agreement resolves earlier squabbling about minimum per-station fees, but leaves unresolved the stickier question of whether SoundExchange will hold medium and large webcasters to the fees handed down by the Copyright Royalty Board (small webcasters have been offered a deal, although some of them are boycotting it, calling the deal an attempt to "divide and conquer" webcasters, and claiming that it unfairly limits their growth).

Here's DiMA's announcement of the deal:

DiMA,
SoundExchange Reach Minimum Fee Agreement

• “Important First Step” Signals Good-Faith RoyaltyNegotiations Are Under Way*

__August 23, 2007 __– DiMA andSoundExchange reached an agreement today to cap the Internet radio "$500
per channel minimum royalty" at $50,000 per service, signaling the startof productive negotiations and bringing resolutions to three important musicindustry issues.

DiMA and SX also agreed that beginning in six months webcasters will provideSoundExchange with a full census of songs performed (24 hours a day, 365 days ayear) – an important tool for the accurate distribution of royalties toindependent labels and artists, and

In addition, SoundExchange and DiMA will form a committee to evaluate the issueof streamripping and potential technological solutions to it.

“This agreement marks an important first step in the internet radioroyalty negotiation process,” said DiMA Executive Director JonathanPotter. “We’re encouraged by this development and the knowledgethat good-faith negotiations have begun. We look forward to the next step ofnegotiating the royalty rates that will allow for the growth of the Internetradio industry, a platform for music discovery for consumers.”