Part Two
The decision of whether or not to stream a broadcast of music or any music at all on the Internet is actually quite complicated. There are costs associated with the software used, licensing of the musical works (the lyrics and composition) through the "performing rights societies" BMI, ASCAP and SESAC and, of course, the licensing of the sound recordings (the actual recording that is played). On top of the costs, there are reporting requirements as well. And, then, there are the minimal statutory requirements that must be met before you even begin streaming. For many broadcasters, the decision tree ends pretty much where it began after the costs in time, resources and money are added up.
image: tizianoj
For those who decide to continue on despite this, the process can be broken down into several steps.1) Find the right software. Ideally, the software should be able to keep track of a lot of data including the number of listeners at any given time and what tracks were played when. If it has the ability to generate reports, that is even better. The right software will make life much easier and help with No. 2.
2) Meet the statutory requirements. The Digital Millenium Copyright Act ("DMCA") was set up in such a way that broadcasters who stream music get a statutory license to do so - which eliminates the need to go to each and every music owner to get a license for all of the music that is played- but only if the broadcaster meets all of the requirements.
3) File a notice with the Copyright Office. It's still not time to flip the switch just yet. The broadcaster must now have to file a Notice of Use of Sound Recordings Under Statutory License with the Copyright Office (and pay a $20 fee). The good news is that this is a one-time filing, unless you have information that changes in which case, an amended version would need to be filed (with a new fee, of course).
4) File a Statement of Account with SoundExchange. SoundExchange is the clearinghouse organization that was appointed by the U.S. Copyright Office to collect royalties from the internet streaming of music, among other things, and distribute those royalties to the artists who own the copyrights in the sound recordings that are being played.
The good news is that the Statement of Account can be filed with SoundExchange after the broadcaster starts streaming. The bad news is that the minimum payment must be included with it.
Once the software is in place, the statutory license requirements are met, the notice is filed with the Copyright Office and the Statement of Account is filed with SoundExchange, the broadcaster is started down the road. But, maintenance is required.
Under new rules promulgated by the Copyright Royalty Board (which was given authority to do this by the Copyright Office), broadcasters who stream must file quarterly reports with SoundExchange detailing at least two weeks' worth of programming so that SoundExchange can know how to divvy up the royalties that it receives.
The annual fee that is paid also varies wildly depending upon the number of performances that were made, the nature of the internet stream (commercial vs. non-commercial) and several other factors.
I have just outlined the very basics of streaming and the regulations that must be followed and this listing should by no means be used or interpreted as the only things that must be considered. As always, anyone wishing to begin streaming on the internet should consult a qualified attorney with background in copyright and specifically streaming so that they can evaluate the specifics of the situation.
Streaming is here to stay, and despite predictions of its sky falling down, so far it has managed to hang on. It is also likely that SoundExchange and the regulation of streaming will stick around, too. So, knowledge of the rules and an understanding of the nature of the issue is a must.
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