CARP Rejected; Librarian Given 30 Days To Set Rate

CARP Rejected; Librarian Given 30 Days To Set Rate

Adding another twist to the webcasting royalty rate debate, Librarian of Congress James H. Billington has rejected the Copyright Arbitration Royalty Panel’s suggested rate structure.

Written By

Molly Sheridan

Adding another twist to the webcasting royalty rate debate, Librarian of Congress James H. Billington has rejected the Copyright Arbitration Royalty Panel‘s suggested rate structure.

Billington’s order to reject was posted this morning on the U.S. Copyright Office Web site. It reads in part: “The Register of Copyrights recommends, and the Librarian agrees, that the CARP’s determination must be rejected. A final decision will be issued no later than June 20, 2002.”

CARP issued a report on February 20, 2002 recommending a fee structure that was less than requested by the recording industry but significantly higher than what webcasters felt they could handle.

Though the rejection may seem to be a victory for webcasters, and in reality may truly be, the RIAA isn’t declaring defeat just yet and urges a cautious interpretation of Billington’s action. “The Librarian has rejected the arbitration panel’s determination, but we do not know why or what decision the Librarian will ultimately make based on the evidence presented,” noted Cary Sherman, president of the RIAA, in a statement. “Since both sides appealed the panel’s determination, anything is possible. We look forward to the conclusion of this process on June 20th, and to the day when artists and labels finally get paid for the use of their music.”

However, Jonathan Potter, Executive Director of the Digital Media Association, is hopeful that the rejection signals a better deal ahead. “When Congress enacted the Internet radio statutory license it intended to promote a new medium and promote artists’ welfare. Today’s decision by the Librarian offers hope that the final royalty will be more in line with marketplace economics than was the arbitrators’ proposal. If so, then the result will accomplish Congress’s goals.”