New webcasting rates a win for radio broadcasters

- New rates effective Jan. 1

By David D. Burns, Pillsbury Winthrop Shaw Pittman

In a decision long awaited by webcasters, the Copyright Royalty Board (CRB) has released its new webcasting royalty rates.  

These royalties are paid by non-interactive streaming services on which listeners cannot choose the specific songs they listen to, such as Pandora and radio stations that stream their programming. 

The royalties are paid to SoundExchange, a performing rights organization which collects the payments on behalf of record labels and other holders of copyrights in sound recordings. 

Services such as Spotify and Apple Music, which allow listeners to choose individual songs to listen to, negotiate licensing arrangements privately with record labels and are not affected by these rates. 

The new rates will become effective on Jan. 1, 2016 and will remain in effect until Dec. 31, 2020.

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