Webcasters Face 12% Tax For Using Traditionally-Licensed Music

Aug 23rd, 2007 | By | Category: Making Money with Podcasts, Podcasting Law

Music industry group SoundExchange said Tuesday that small Internet radio broadcasters could pay royalty rates from 10-12% to stream traditionally-licensed music online through 2010.

Qualified Webcasters ‚Äî those earning $1.25 million or less in annual revenue ‚Äî have until Sept. 14 to accept SoundExchange’s offer. The agreement covers streaming recordings of SoundExchange members.

SoundExchange represents more than 20,000 recording artists and 3,500 record labels, including the major recording companies.

Much of the music released using Creative Commons licenses, an alternative to mainstream music licensing, allows for free commercial use, including copying, distributing and transmitting the work.

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