COLLEGE RADIO FEUD ERUPTS OVER SETTLEMENT FOR ONLINE STREAMING ROYALTIES

A pending settlement reached earlier this month between College Broadcasters, Incorporated (CBI) and SoundExchange doesn’t sit well with Fritz Kass, CEO of rival organization Intercollegiate Broadcasting Service (IBS).

In a recent e-mail, Kass alleged:

It is quite possible that SoundExchange makes, has made, payments to CBI, which in turn help fund the CBI Executive Director [Will Robedee], and perhaps others. CBI and CBI's Executive Director may have a personal stake in the outcome of these proceedings. [scroll down to see the complete quote]

Fritz Kass, CEO Intercollegiate Broadcaster Service	Will Robedee, Executive Director College Broadcasters, Inc.

CBI reached the proposed settlement with SoundExchange that, if ratified, will keep royalties CBI member stations pay for online steaming rights the same as current rates for the next five years. The agreement sets the annual cost for CBI’s members at $500.00 per year, plus a $100.00 fee as a proxy for not reporting certain performance broadcasts.

IBS could have reached a similar agreement with SoundExchange but Kass protested saying $500.00 is too high for IBS members. The two organizations compete for members. CBI’s agreement with SoundExchange may increase the perceived value of CBI membership. Kass says the CBI agreement could effect all noncommercial broadcasters:

[SoundExchange] by agreement with CBI has established a "market place" noncommercial rate of $600 per stream. If the CBI becomes the noncommercial standard, as SoundExchange has proposed, then [fees paid by other noncom broadcasters] would more than double per stream.

CBI and IBS are small organizations that rely on membership fees and revenue from conferences.  Annual revenue for CBI in 2012, according to filings with the IRS, was around $72,000. IBS reported annual revenue for 2013 of around $55,000. Both organizations rely on volunteers, though CBI does pay part time Executive Director Robedee.

Relations are not warm between Robedee and Kass. In an October 15, 2014 email, Kass said:

I am in no way connected financially to either the broadcast or music industry. I have no stake personally in the outcome of setting webcasting rates. That is not true of the Executive Director of CBI [Will Robedee], who according to his sworn testimony, is paid by CBI. There may be other recent payments from SoundExchange to CBI for conference exhibit/sponsor fees, etc. It is quite possible that SoundExchange makes, has made, payments to CBI, which in turn help fund the CBI Executive Director, and perhaps others. CBI and CBI's Executive Director may have a personal stake in the outcome of these proceedings.

Robedee declined to comment on the statement by Kass.

SoundExchange is a 501c6 organization entrusted by the Copyright Royalty Board to collect and distribute digital performance royalties from noncommercial broadcasters and webcasters. SoundExchange currently has agreements with several organizations: the Corporation for Public Broadcasting, on behalf of NPR, APM, PRI and PRX, the National Federation of Community Broadcasters (NFCB), and the National Religious Broadcasters (NRB). IBS, as well as other noncom organizations, are involved in litigation with the Copyright Royalty Board over rates and terms for 2016 – 2020.

IBS won a recent DC Circuit Court case challenging the constitutionality of the Copyright Royalty Board’s decision process. Representatives of CBI and IBS declined to comment on the litigation. IBS is involved, and has been involved, in litigation before the US Court of Appeals (DC Circuit) since May 2007 over the $500 minimum performance royalty rate ordered by the CRB for all commercial and noncommercial web streams.