SoundExchange, the performance rights organization that collects royalties on the behalf of sound recording copyright owners, has exercised its right under the Digital Media Copyright Act to request that access to a webcasting platform be disabled. SWCast is a platform that has offered a streaming solution to smaller webcasters that may not have the funds to develop their own streaming platform. “DJ your own web radio station.” says the site, offering “clearance to legally broadcast your music” along with technical support, streaming audio software and other tools.
According to SoundExchange, SWCast has failed to make any payments for royalties incurred after 2005 and has not filed reports necessary for compliance, while collecting monthly fees from webcasters for those payments and reporting services.
Randall Krause, President and CEO of SWCast, in a letter posted on his website, does not deny the claims and says he is “committed to ensuring that we reconcile any and all compliancy concerns of SoundExchange going forward.”
Meanwhile the more than 100 webcasters that were streaming with SWCast are left looking for another streaming partner – not to mention the monies they were paying thinking they were covering their royalties. Jason Stoddard, Live365’s Director of Broadcasting Sales, says there’s always room for them in their network. “While the disabling of SWCast is an unfortunate event for many webcasters, our ongoing dedication to complying with all royalty regulations means they still have a place to go.”
By everything I have read, the stations that were streaming with SWCast had no idea they were not compliant. While it seems that they were eclectic stations with smallish audiences, the betrayal of the stations and their listeners is not small at all. By all that I can see, SWCast represented that they covered all the licensing obligations for its stations. And SoundExchange hasn’t received payments for any period since 2005? All I can say is, what took SoundExchange so long?