News for YOU, the IBS Member!

IBS Position:

1. The $500.00 minimum annual payment to SoundExchange, for 159,140 ATH per month, or a bulk minimum buy of 22,916,160 digital music performances of statutory music, is very much greater than the actual use of the statutory license by small and very small noncommercial webcasters.

The forced minimum bulk purchase for the use, webcast, of statutory music covers roughly 218 continuous listeners 24 hours a day, 365 days a year. The reality is that virtually all new high school and college webcasters operated by public owed education entities do not exceed four (4) continuous webcast listeners (4 is 2% of 218). Many of these listeners are not hearing statutory digital music performances, but instead are listening to sports, talk radio, and other non-statutory digital music.

For eight (8) continuous listeners, roughly 4% of the 218 listeners included in the minimum $500.00 license fee the actual use of the license is about $20.00 worth per year. (4% of $500 equals $20). IBS describes this proposed rate as the webcast performance copyright annual fee for very small noncommercial webcasters.

For 21 listeners, roughly 10% of the 218 listeners included in the minimum $500.00 license fee the actual use of the license is about $50.00 worth per year. (10% of $500 equals $50). IBS describes this proposed rate as the webcast performance copyright annual fee for small noncommercial webcasters.

The above proposed IBS webcast annual webcast royalty rates for use of the statutory digital music license for which SoundExchange is the sole collective are: $20.00 annually for very small noncommercial webcasters and $50.00 annually for small noncommercial webcasters. These rates are based on the small noncommercial webcaster using only 10% (21 continuous listeners v. 218) and the very small noncommercial webcaster using only 4% (8 continuous listeners v. 218).

2. IBS proposes of the 2011 - 2015 webcast rate period, now under consideration, that thousands, perhaps even ten thousand educational, government owned/operated (State Colleges/Public Schools) would be allowed to use the Internet for webcasting if the annual webcast royalty rate equaled the actual annual digital music performance usage of 8 or 21 continuous digital music listeners at $20, or $50, annually. IBS does not recommend the much larger current minimum bulk license purchase of $500.00 for 159,140 ATH per month from SoundExchange, or 218 continuous webcast listeners annually (22,916,140 performances).

Note: Until, if, there is further action by the US Court of Appeals (DC Circuit), noncommercial webcasters annually owe SoundExchange the $500.00 minimum rate, subject to a later "true up" if the current $500.00 minimum rate payable to SoundExchange is ultimately determined to be a lower minimum rate, say $20 annually, or $50 annually. (IBS proposed rates) (Reference Appeal Action: IBS v. CRB - - Case 07-1123) payable to SoundExchange.

3. PUBLIC Education entities may be prohibited from using the Internet/Webcasting to teach America's Sons and Daughters about digital communications by the $500.00 minimum rate, a hugh minimum bulk purchase of 22,916,160 performances annually. Students should be allowed to learn/practice vital digital communication/Internet SKILL Sets required by them to survive in the Global World Economy!

4. The Corporation for Public Broadcasting (CPB) receives annually from US Taxpayers, by Congressional Authorization/Appropriation over $400,000,000.00 ($400 Million Dollars). CPB pays, using Federal Taxpayer dollars the SoundExchange copyright royalty fees for all NPR and CPB Qualified, webcasters. State and local taxpayers often must pay SoundExchange webcast royalty fees. Federally funded high visibility mass audience (over 200 continuous listeners) are given preferential rates. State and Local Government funded training entities often with very low listenership (20, or even 5 or less listeners per minute), due to the minimum must pay the $500.00 minimum rate even though their pay per performance rate is less. Often the use of the statutory music license is only 4% of the federal funded NPR webcasts.