Jesse Helms: Web radio's hero

The Helms-sponsored amendment significantly eases the pressure that many of these stations were feeling. But does the SWSA adequately address the needs of small and noncommercial webcasters?

"No," argues Freedman. "The only thing the bill itself does is delay retroactive payments until next year and invites negotiations between the RIAA and noncommercial and non-CPB stations. This is hopeful, but rates themselves have not been adopted or even proposed. Noncommercial stations should have a better deal. At very minimum they should be given the deal NPR was given."

The NPR deal Freedman refers to was one made between the Recording Industry Association of America (RIAA) and the Corporation for Public Broadcasting, which represents NPR affiliates. While the exact terms of the negotiations have been kept secret, insiders say that at least part of the deal ensures that if an NPR station has fewer than 10 employees it is exempted from record-keeping requirements.

After performance fees, reporting requirements pose the biggest budgetary challenge to community Web broadcasters.

"CARP has yet to set reporting requirements for stations like ours," said Jeff Herrick, voluntary program director at WXDU in Durham, N.C. "Even logging just the song and artist information is tough for us. We don't have an electronic system."

Statistical information will be collected by Sound Exchange, an organization that will also collect and distribute royalties to the more than 400 record labels it represents. At a recent panel held at the CMJ music festival in New York, Sound Exchange spokesman John Simson sounded sympathetic to the plight of community stations.

"We understand that college stations have small staffs and we're trying to bring down [reporting requirements] to a reasonable level," said Simson. "But we've also been frustrated. When [college stations are] asked to help us we don't get much response."

Not so, says Freedman, who also participated in the conference panel.

"Simson shocked me when he said he hadn't received an actual proposal from noncommercial broadcasters. I know at least the Collegiate Broadcasters Inc. for sure has put out a fairly coherent proposal."

The CBI has indeed initiated a response. A trip to its Web site reveals that back in April it issued its comments in an official notice to the Copyright Arbitration Royalty Panel that was submitted to the U.S. copyright office and the Library of Congress. Other documents on the site demonstrate the financial burdens that college radio stations are already under as a result of having to pay ASCAP and BMI royalty fees.

For now, many are simply content with the apparently burgeoning sense of collaboration among the recording industry, artists, Congress and webcasting stations. "RIAA and webcasters went hand in hand to visit congressional offices [during SWSA negotiations], says Hanson, the RAIN publisher. He sums up the situation best by saying: "This could be a harbinger of a new era of cooperation between labels and webcasters. They should be working together. I hope they can."

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