Entertainment, Arts, and Sports Law Commons^™

Royalty Rate-Setting For Webcasters: A Royal(Ty) Mess, Amy Duvall

Michigan Telecommunications & Technology Law Review

The Internet is a haven for free expression. Not only are content-based restrictions disfavored, but "[the internet] provides relatively unlimited, low-cost capacity for communication of all kinds." Almost half of all Americans have listened to music online, whether rebroadcasts of terrestrial radio or to find niche music that terrestrial radio simply does not play, and 13 percent tune in regularly. Webcasters provide a unique outlet for new artists; however, if royalty rates are set too high for all but the largest webcasters to stay in business, the variety of music available will be severely restricted. Musical diversity stimulates the generation …