A number of Internet radio stations will be participating in a Day of Silence on June 26 to protest the retroactive royalty rate increases due to go into effect on July 15. Organized by Kurt Hanson, publisher of the Radio and Internet Newsletter, the protest is designed to remind listeners that silence is “what the Internet could be reduced to on or shortly after” the royalty increase begins.
Read this article from Ars Technica
Internet radio sites are global by nature, streaming musical programs digitally to users all over the world. But there is no one-stop global shopping for royalty collections, which means that Pandora has to negotiate separate agreements with institutions from each territory or directly with music labels…“In actual practice, companies had two options if they wanted to remain legal,” said Lauri Rechardt, a legal consultant who helped negotiate the agreement for the federation, which represents 1,400 record companies in 70 countries. Either they limited their service to certain territories for which they had cleared the rights, Mr. Rechardt said, or they faced the physically impossible task of striking deals with hundreds of record labels.
Read this article from the New York Times