DiMA Responds to U.S. Circuit Court Decision

Congress Should Equalize Radio Rules so that Consumers – Not Royalties – Determine Winners and Losers

Washington, D.C. (July 10, 2009) – Jonathan Potter, Executive Director of the Digital Media Association (DiMA), issued the following statement.

"Today the U.S. Circuit Court for the District of Columbia struck down the Copyright Royalty Board’s imposition of a $500 minimum per-channel administrative fee as arbitrary and capricious, but upheld the very high per-song-performed royalty. DiMA is disappointed that the bulk of the CRB’s unreasonable rate-setting decision was upheld, although pleased that the Court overturned one of the most egregious and arbitrary outcomes – the minimum per-channel fee that on its own threatened to bankrupt several Internet radio services.   Appellate Decision 071009

DiMA stands firm in its position that the rates for commercial webcasters set by the CRB are unaffordable and inhibit Internet radio’s opportunity to compete with satellite and broadcast radio. Congress should equalize the rules of radio royalties so that consumers – not royalties – can determine winners and losers.

DiMA appreciates that so many have recognized the need for rates lower than those set by the CRB and that SoundExchange has entered into several post-decision settlement agreements. We hope that more agreements are forthcoming during the final few weeks of Webcaster Settlement Act authority."

DiMA is the ambassador for the digital media industry: webcasters, online media, digital services, and technology innovators. DiMA advocates for business and regulatory environments that support our members’ growth and success, including fair competition, fair royalties, innovation and consumer welfare.

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For more information, please contact:

Sheri Lapan | Digital Media Association

1029 Vermont Ave Suite 850 | Washington, DC 20005

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