New York, NY (Top40 Charts/ IFPI) IFPI, the organisation that represents the recorded music industry worldwide, has welcomed a decision by the High Court of Australia confirming that licence fees should be paid by commercial radio stations for recorded music they stream through internet simulcasts.
The verdict follows a four year legal battle conducted by music licensing company PPCA, on behalf of artists and labels, against the broadcasters' trade body Commercial Radio Australia.
Frances Moore, chief executive of IFPI, says: "This welcome ruling confirms that Australian broadcasters should pay rights holders when they stream their music online. It is a well established principle in most countries that broadcasters should pay a fair rate for the recorded music they use to attract audiences and drive advertising revenues. This principle should hold true when they use simulcasting technology to reach an audience online."
Dan Rosen, chief executive of PPCA says: "This puts an end to the legal wrangling over payment for recorded music streamed on the internet. It confirms radio stations must pay a licence fee for streamed music and we hope to move quickly to work out a fair and proper licensing deal. We look forward to working with radio to establish equitable arrangements. For too long radio has had a free kick - driving listening audience numbers and profits via the internet while not fairly paying artists for use of their recordings."
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