New CARP Legislation Becomes Law

From another great article from Kurt Hanson’s RAIN newsletter written by Kurt and Paul Maloney; "President Bush on Tuesday signed into law H.R. 1417, the measure which does away with CARP and reforms the process that led to the controversial webcasting royalty rates of 2001."

"The "Copyright Royalty and Distribution Reform Act of 2004" is the culmination of efforts largely led by webcasters and broadcasters, their representatives in Washington, D.C., and Congressmen and senators sympathetic to the cause…"

"…the new law will replace the copyright arbitration royalty panels (or CARP) process originally designed to resolve disputes over copyright royalty rates between owners and users of copyrights."

"After a determination of a webcast royalty rate condemned by webcasters and broadcasters as destructively high (and, likewise, as absurdly low by recording industry representatives), the CARP process came under fire from participants and legislators alike. "

"Following the efforts of webcasters (and RAIN) to gain the attention of Congress and the mainstream press to their plight…the House Subcommittee on Courts, the Internet, and Intellectual Property began an examination of CARP’s problems…"

"As a response to the problems of effectiveness and cost, H.R. 1417 now provides for full-time Copyright Royalty Judges to settle matters, and a $150 price to participate.  Also importantly, the new law enhances of the powers of discovery by opposing sides in a royalty dispute…"

Read the full RAIN article here.