Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Licensing requirements and royalty rates for online uses of music are undergoing sweeping changes — spurring litigation, appeals and even legislation in Congress. As a result, Webcasters are scrambling to re-evaluate and redirect their business models, as they may soon be forced to pay for huge increases in royalties to recording artists.

The controversy began in March, when the Copyright Royalty Board (“CRB”) created a new royalty payment scheme under which Webcaster payments would be based on a “per-performance” calculation rather than the “aggregate tuning hours” basis more commonly used in the past. The board also set royalty rates through 2010 at significantly higher levels than in the past. Although this decision was met with fierce opposition from Webcasters, the board denied all requests for reconsideration and rehearing. Despite this ruling, the CRB created an optional transition period during which Webcasters may make limited use of the aggregate tuning hours option, and extended the date on which the new royalties become effective to July 15. In the weeks surrounding this deadline, both sides took an active role in renewed litigation in court, pending legislation before Congress and ongoing settlement negotiations. The payment due date has passed, however, and the outcome of this controversy is still uncertain.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]

Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.


ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.