Copyright Royalty Board Sets New Rates for Satellite Radio

As a cloud of uncertainty continues to linger over the fate of webcasters, satellite radio services Sirius and XM Satellite Radio have been granted fixed percentage-of-revenue performance royalty rates by the US Copyright Royalty Board. Here’s what satellite radio operators will owe to SoundExchange (in addition to publishing royalties paid to other organizations): 2007: 6 […]

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As a cloud of uncertainty continues to linger over the fate of webcasters, satellite radio services Sirius and XM Satellite Radio have been granted fixed percentage-of-revenue performance royalty rates by the US Copyright Royalty Board.

Here's what satellite radio operators will owe to SoundExchange (in addition to publishing royalties paid to other organizations):

2007: 6 %
2008: 6%
2009: 6.5%
2010: 7.5%

(We've argued that webcasters should pay royalties under a similar percentage system.)

Gary Parsons, chairman of XM Satellite Radio, appears pleased with the rates, although it's sort of hard to tell:

"Today's ruling by the Copyright Royalty Board brings to anend a year-long proceeding with the record labels and provides ourcompany certainty regarding music performance royalties to be paidthrough 2012. Moreover, the music performance fees set by the CRB arein the range projected by many financial analysts who cover thisindustry. XM remains strongly committed to providing consumers thevery best in both music and non-music programming, to compensatingartists for their creative work, and to providing our shareholders afair return on the multi-billion dollar investment in this new audioentertainment platform."

If they so desire, SoundExchange or any other party can file for a re-hearing at any point in the next two weeks.