SoundExchange Finds Little Love on Satellite Appeal

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The US Copyright Royalty Board (CRB) recently denied an appeal by SoundExchange to reconsider satellite royalty rates.

SoundExchange, which represents recording industry interests, initially expressed dissatisfaction with a ruling delivered in early December of last year.  That decision set recorded royalty rates at 6 percent of gross revenues, a level that ramps to 6.5 percent by 2009, and 7.5 percent by 2010.

John Simson, executive director of SoundExchange, criticized the “below market rate” resolution, though the Royalty Board refused to budge.  Part of the disagreement stemmed from the methods used for calculating applicable gross revenues, though the Board opted not to retune.  “SoundExchange has not made a sufficient showing of clear error or manifest injustice with respect to the gross revenues definition or new evidence with respect to the proposed merger that would warrant a rehearing,” the CRB ruling declared.

Story by news analyst Alexandra Osorio.