CRB establishes new royalty rates for satellite radio performance fees


On 12/3, the Copyright Royalty Board (CRB) issued its determination and order setting the royalty rate payable by XM and Sirius under the statutory license covering the performance of sound recordings over satellite systems for the six-year period starting January 1, 2007 and ending December 31, 2012. Under the terms of the CRB Satellite Radio Services, XM and Sirius will pay a performance license rate of 6.0% of those gross revenues subject to the fees for 2007 and 2008, 6.5% for 2009, 7.0% for 2010, 7.5% for 2011 and 8.0% for 2012.

The revenue that’s subject to royalty fees includes subscription revenue from subscribers and ad revenues from channels other than those that use only incidental performances of music.

XM and Sirius have 15 days from the 12/3 decision to move for rehearing. Once the CRB has considered any rehearing motions, the Librarian of Congress will publish the final determination in the Federal Register. Parties will have 30 days from that publication to appeal the decision to the U.S. Court of Appeals for DC.

RBR observation: Just think, AM and FM broadcasters, you too could be paying 8% of your revenues to the record labels, if they get their way, in addition to what you already pay to ASCAP, BMI and SESAC.