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Contact: Susan Pickering
Executive Director, IWA
866 274 1732 x 2649
spickering@webcasters.org

For Immediate Release
June 20, 2002

INTERNATIONAL WEBCASTING ASSOCIATION RENEWS EFFORTS TO SAVE INTERNET RADIO

(WASHINGTON, DC)— The International Webcasting Association (IWA), the largest worldwide non-profit trade organization representing companies, organizations, and individuals active or interested in the delivery of multimedia over the Internet, renews its support of members’ efforts to achieve fair copyright regulation in light of today’s announcement by the Library of Congress of the royalty rates to be paid by webcasters for the performance of recorded music on the Internet. The Librarian’s decision modified a recommendation of a Copyright Arbitration Royalty Panel (“CARP”) proposing rates to the Library in a decision reached in February. While the Librarian has proposed a reduction in the rates proposed by the CARP, the IWA still believes that the rates are too high to permit small commercial webcasters to continue to operate. “These rates announced today will drive webcasters to shut down their operations. Our members believe that the rates are so high as to imperil the entire Internet radio industry,” said Roger Dean, Chairman of the IWA. “We will renew our efforts in support of our members and the webcasting industry in the search for a viable solution.”

The IWA stands with its members in urging the development of fair rates and terms for royalties to performers, one much closer to that paid to the performing rights organizations for the copyrights on musical compositions. The IWA supports the development of such rates and terms either through voluntary negotiation or, failing that, through appellate or legislative channels. The development of new rates is necessary to ensure the success of the IWA’s members and the webcasting industry at large.

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“Webcasters recognize there is a cost to do business. What they cannot accept is a fee that restricts their ability to stay in business. Without a percentage of revenue structure, there is a barrier to entry for all but the largest webcasters. Webcasters provide an outlet for new artists and their music, and a source for listeners who are looking for audio entertainment not available on terrestrial radio. The result of the rates announced today will result in an Internet broadcasting industry which is dominated by big media companies, and it may well become nothing more that a mirror image of terrestrial broadcasting. The public is not served by limited choices of Internet outlets. We stand by our members’ efforts to bring to public attention the outrageous rates proposed by the CARP, and will renew efforts to reach an equitable solution, whether it is through negotiation or legislative relief,” said Susan Pickering, Executive Director of the IWA.

The IWA is planning further activities to continue educating the public and independent artists on the ramifications of today’s announcement, and will also provide a platform for webcasters to seek changes in the rates announced today.

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About IWA

The International Webcasting Association was formed in 1996 to create a forum for all companies and individuals involved in this digital revolution to promote the growth and development of webcasting and streaming media. IWA membership includes webcasters, portal websites, streaming service providers, content creators, educators, entrepreneurs, and user companies.

For more information, visit www.webcasters.org.

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