Internet Streaming Performance Fees  

Summary of the Determination of the Librarian of Congress on Rates and Terms for Webcasting and Ephemeral Recordings

The Librarian of Congress has accepted the recommendation of the Register of Copyrights and rejected the rates and terms recommended by a Copyright Arbitration Royalty Panel (CARP) for the statutory license for eligible nonsubscription services to perform sound recordings publicly by means of digital audio transmissions ("webcasting") under 17 U.S.C. §114 and the statutory license to make ephemeral recordings of sound recordings for use of sound recordings under 17 U.S.C. §112. In place of the rates recommended by the CARP (see CARP recommendations), the Librarian has adopted the following rates:

Type of DMCA – Compliant Service Performance Fee
(per performance)
(Section 114)
Ephemeral License Fee (Section 112)
Proposed by CARP Adopted by Librarian Proposed by CARP Adopted by Librarian
Simultaneous Internet retransmission of over-the-air AM or FM radio broadcasts (“Radio retransmission”) (whether transmitted by a broadcaster or a webcaster).
0.07¢
9% of Performance Fees Due
8.8% of Performance Fees Due
All other Internet transmissions (“Internet-only” transmissions) (whether transmitted by a broadcaster or a webcaster)
0.14¢
0.07¢
Non-CPB, Non-Commercial Broadcaster  
  Simultaneous Internet retransmissions of over-the-air AM or FM broadcasts.
0.02¢
0.02¢
  Archived programming subsequently transmitted over the Internet, substituted programming and up to 2 side channels
0.05¢
  Transmissions on any other side channels.
0.14¢
0.07¢
Business Establishment Service (background music service)
[17 U.S.C. § 114(d)(1)(C)(iv)]
Statutorily Exempt
10% of Gross Proceeds
Minimum Fee for Business Establishment Service (background music service)  
$500
$10,000
Combined Minimum Fee for all other Services (Performance and Ephemeral)
$500 for each licensee

The most significant difference between the CARP’s determination and the Librarian’s decision is that the Librarian has abandoned the CARP’s two-tiered rate structure of 0.14¢ per performance for “Internet-only” transmissions and 0.07¢ for each retransmission of a performance in an AM/FM radio broadcast, and has decided that the rate of 0.07¢ will apply to both types of transmission. Some of the rates for noncommercial broadcasters have also been decreased, and the fee webcasters and broadcasters must pay for the making of ephemeral recordings has been reduced from 9% of the performance fees to 8.8%. The minimum payment for business establishment services was increased to $10,000.

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