Surprise, Surprise: SoundExchange Possibly Overstepping Its Bounds With Illegal Lobbying

Published: August 6, 2007, 11:25 am

Tags: internet radio, musicfirst, portable media, radio, riaa, soundexchange, surprise surprise

It looks like internet radio's favorite fee-collection organization, SoundExchange, might be playing hard and fast with legal limits on how it can spend collected money. Not on the list of three kosher uses (full legal mumbo-jumbo post-jump) is lobbying and PR. But Listening Post's Eliot Van Buskirk noticed that it appears to be engaged in both. Under Section 114(g)(3) of the Copyright Act, it's only allowed to use the money for (A) the administration of the collection, distribution, and calculation of the royalties; (B) the settlement of disputes relating to the collection and calculation of the royalties; and (C) the licensing and enforcement of rights with respect to the making of ephemeral recordings and performances subject to licensing under section 112 and this section, including those incurred in participating in negotiations or arbitration proceedings under section 112 and this section, except that all costs incurred relating to the section 112 ephemeral recordings right

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