SoundExchange is confused

For those who don’t know, SoundExchange is the group that sets the Internet radio royalty rates, and the organization recently came out with a decision that is likely to end a great deal of Internet radio. Several webcasters, including NPR, have appealed those rates. Their recent press release about the appeals shows that they don’t understand.

“Just because you don’t like the outcome of a fairly played game doesn’t mean you should ask the referee to order the game replayed,” said SoundExchange executive director John Simson.

“Yes, Internet radio is important to the music community, but that doesn’t mean that artists and record labels don’t deserve fair compensation for their works.”

Besides a really poor metaphor, the executive director seems to be under the misapprehension that webcasters don’t want artists to receive fair compensation. Noone is saying that. The disagreement is that the rates they set is more likely to kill off creativity and innovation rather than encourage it. SoundExchange thinks otherwise, and pretty much recommended what the RIAA suggested. That should cause them to seriously consider their decision and cause us to seriously consider their decision-making process.

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