It would appear upon closer scrutiny that the federal copyright obligation webcasters owe to record labels and recording artists, which gained more public attention since the Napster litigation, may be of more immediate concern. As such, since 1998, the law required that any radio station streaming its signal over the web would be obligated to pay royalties to performance right holders, such as the record labels and the artists who perform on recordings. The Copyright Office reaffirmed this requirement last year and clearly stated that FCC licensees who simulcast over the Internet are required to pay license fees under these statutes. Indeed, one major broadcast company, Infinity Broadcasting, was reported to have decided against its streaming its broadcasts from the outset, because of uncertainty over copyright obligations and the royalties generated from those obligations. Interestingly, but perhaps not coincidentally, the week that radio stations ceased streaming their broadcasts over the web was the same week that the Copyright Office received testimony and arguments on the rate that should be set for the statutory license called for under this legislation.
New technology presents many challenges, as well as many opportunities, for performers.
As technology evolves, we must ensure that artists' incentives to create are nurtured, artists are fairly compensated for the exploitation of their work and that present and future streams of income are shared with the creators.