The Digital Media Association confirmed that negotiations with SoundExchange over net radio royalties did not yield an agreement before the February 15 deadline. The DiMA, on behalf of its members which include RealNetworks, Pandora and MTV has been negotiating with SoundExchange since March of 2007 when the Copyright Royalty Board increased some webcasters royalties by 300%.
"I am disappointed that DiMA negotiations with SoundExchange did not result in an agreement...," the DiMA's Jonathan Potter said in a statement. "Many points were agreed upon, but we are unable to resolve our principled differences regarding the applicability of sound recording performance royalties to various activities of multifaceted online companies, particularly when those activities and their revenue are not directly associated with the performance of sound recordings." Potter promised to continue the fight in the new session of Congress.
“In the upcoming Congress DiMA will continue to fight for legislative and royalty parity, to ensure that whether a radio service uses cable, satellite or Internet technology to distribute programming – all will play and pay by the same rules and artists will benefit equally. DiMA also anticipates participating in the CRB proceeding to set Internet royalty rates for 2011-2016.”
“DiMA thanks all who supported the Webcaster Settlement Act and thereby provided an opportunity for these negotiations, including Chairman Conyers, Chairman Berman, Chairman Leahy, and Ranking Members Smith and Specter. We are extremely grateful to more than 150 supporters of the Internet Radio Equality Act, most notably Congressmen Jay Inslee and Don Manzullo and Senators Ron Wyden and Sam Brownback.