MusicFIRST Proposes Flat Royalties For Some Broadcasters

From Radio Ink:

WASHINGTON -- November 6, 2007: Radio Ink has obtained a document being circulated on Capitol Hill by the MusicFIRST Coalition proposing flat performance-royalty rates for "small commercial radio stations," noncommercial stations, and college stations. The MusicFIRST Coalition - -- whose members include the RIAA, SoundExchange, the American Federation of Musicians, the Recording Academy, and the Recording Artists Coalition -- was formed in June to lobby for a performance royalty from broadcast radio and television.

According to the document obtained by Radio Ink, the coalition is proposing changes to the law that would do away with broadcasters' royalties exemption and have small commercial stations -- "small" is not defined -- pay a flat royalty rate of $5,000 per year, while noncoms and college stations pay $1,000 a year.

According to the proposal, stations that "make only incidental uses of music," such as Talk stations, would not pay at all for music. Stations that use some music but are not primarily music formats would be offered a "per program license option so that they pay only for the music they use."

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