Digital Media Association (DiMA) Petitions Government To Issue Rulemaking On Music Programming Over The Internet

Webcasters Pursue Compulsory License For ""Consumer-Influenced"" Transmissions

18-Apr-00

The Digital Media Association (""DiMA""), a Washington, DC-based trade association of over 40 companies engaged in Internet multimedia activities, petitioned the US Copyright Office to issue a rulemaking on the licensing status of consumer-influenced music programming over the Internet. Over the past year, there has been an increasing public demand for music programming over the Internet. Many DiMA members have developed innovative technologies by which Internet Webcast programming can be influenced to some degree by input from listeners and then made available to the public. In its petition, DiMA seeks a declaration that these ""consumer-influenced"" Webcasts qualify for the statutory compulsory license under the DMCA (the fees for which will be determined in a Copyright Arbitration Royalty Proceeding that is in its preliminary stages). DiMAís position has been opposed by the Recording Industry Association of America (RIAA). At issue is whether consumersí ability to influence Webcasts with their own personal preferences will be allowed a compulsory license. Absent a compulsory license, Webcasters may be required to seek individual licensing agreements from each and every record label. ""We are seeking two simple things: clarity and equity,"" said Jon Potter, Executive Director of DiMA. ""Everyone benefits from the new technologies of Internet-based programming - the industry, the artist, and the consumer. We believe these new offerings should not be restricted by onerous licensing standards. Although we think the law is clear, the RIAAís position has necessitated that we take this action in order to resolve the issue and allow responsible players to continue to innovate and serve consumers, artists and the industry."" In its petition, DiMA asserts that this ""consumer-influenced"" music programming available on the Internet is consistent with the letter and spirit of the DMCA statutory licensing structure, because, among other reasons: - Listeners do not have the ability to obtain advance knowledge of which particular songs, albums or artistsí works will comprise Webcast playlists, since playlists are typically computer-generated from a library of hundreds or thousands of sound recordings - most of which are selected without direct consumer input- Actual transmissions by consumer- influenced stations consist, at most, only partially of rated or preferred songs, albums or artists.""We are confident that both the Internet music business and the recording industry will be well served by addressing this narrow but important area of business,"" Potter added. For a copy of the petition filing and more information about DiMA, reference their Web site at www.digmedia.org.

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