New Royalty Rates Imposed for Digital Performances

Copyright Royalty Board Releases New Rates for Streaming Music Providers
– Daily Journal

The Daily Journal interviewed Manatt's Robert Jacobs, co-chair of the firm's Entertainment and Media Litigation practice, and Charles Biederman, a partner in the firm's Entertainment and Media practice, for an article on the Copyright Royalty Board's new royalty rates for digital performance in sound recordings and ephemeral recordings.

The Daily Journal reports that the new rates will apply to non-interactive streaming and Internet radio services from 2016 to 2020. In 2016, the rate will be $0.0017 per performance for non-subscription services and $0.0022 for subscription services. The rates will be reviewed and adjusted annually, beginning in 2017.

Biederman said he thinks the CRB evaluating the rates annually is a good idea.

"If they're revisiting it on a more regular basis, then it will be more reflective of changes in technology and in the economy," he said. "I think people generally will be happier with the result if they feel the issue is being addressed in a timely manner."

Jacobs told the paper that it's a positive move to have annual review, but it could create a burden on the companies involved.

"The increase was more modest than I had anticipated," Jacobs said. "It's certainly better than nothing for the content owners of the world."

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