Web radio stations defend themselves against copyright fees

Swiss internet radio stations are fighting back against high copyright payments after the music industry association Ifpi ran six stations for the first time. The argument is that web radios hardly earn any money. If no agreement can be reached, Ifpi will take legal action.

At the end of 2008, the global music industry association Ifpi operated six Swiss web radio stations for the first time. The dispute over how much internet radio stations have to pay for copyrights continues. The new copyright law does take into account the new technical requirements of global reception and program transmission. However, many details - especially the amount of the fees - are still unclear, Philippe Perreaux, board member of the Swiss Internet Radio Interest Group (ISI), told the Tages-Anzeiger newspaper. The three companies demanding a copyright contribution from web radio stations are the Swiss companies Suisa and Swissperform as well as the worldwide Ifpi. Suisa and Ifpi are demanding an amount of around CHF 3,400 per year per station.
Perreaux sees excessive copyright fees as the end of the pioneering work of web radio. Although some internet radio stations have thousands of listeners, they hardly earn any money, he explains in an interview with the Tages-Anzeiger. Negotiations have so far been difficult, but Suisa and Swissperform have given assurances that they will wait for a mutually acceptable solution before pursuing debt collection. However, webradios that have already signed an IFPI contract will continue to operate. Ifpi Switzerland is looking for a solution with the others, but if no agreement is reached, they will be sued, says Ifpi Managing Director Peter Vosseler.

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