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Re: Sunday, October 6, 2002
Small webcasters and the major labels came to an agreement Sunday night, and the terms of that agreement became part of Rep. James Sensenbrenner's Small Webcasters Amendment Act, passed by voice vote this afternoon. An eligible small webcaster under the bill is one that makes less than $1.25 million in annual revenue from all sources. For the period of Oct. 28, 1998 through Dec. 31, 2002, the bill sets a rate of 8% of gross revenues or 5% of expenses, whichever is higher; for 2003 and 2004, the rate goes up to 10% of the small webcaster's first $250,000 in revenues and 12% thereafter, or 7% of expenses, whichever is higher. Instead of coming due all at once on Oct. 20, back royalties can be paid in three equal installments, with the first due Nov. 30. The bill also sets minimum annual fees of $2,000 for webcasters making less than $50,000 a year; those making more than $50,000 pay a minimum of $5,000. It also clarifies that the designated royalties-collection agency - in this case, SoundExchange - may deduct legal expenses before distributing any money to artists. The bill must now be OK'd by the Senate and signed by the President before it can become law - and all that has to happen before the current session of Congress ends on Friday. Just in..same bullet...hit the kid as everyone else so far...we have someone who is taking out people at random here....
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