Just in - the Australian High Court has confirmed that the Copyright Act 1968 validly imposes a 1% royalty rate on commercial radio. The decision in Phonographic Performance Company of Australia Limited (PPCA) & Ors v Commonwealth of Australia & Ors [2012] HCA 8 (28 March 2012) states that the Australian Government, by legislating the 1% royalty rate, did not in fact acquire the property of the recording copyright holders on unjust terms. The music industry were angling for an increase in the royalty rate noting that it has not changed in 48 years. According to the Australian Copyright Council the Howard Government had announced that they would increase the rate in 2006 but the amendments put forward never contained these provisions. I read from an Artist's Twitter post this morning that in other countries the royalty rate is in the vicinity of 3-5% and in their opinion a small increase would have well reflected the change in commercial broadcast value over time. It is a disappointing decision for the music industry and comes on the back of a recent decision that internet streaming by radio stations does not attract a separate royalty payment.
Further Reading
Phonographic Performance Company of Australia Limited (PPCA) & Ors v Commonwealth of Australia & Ors [2012] HCA 8 (28 March 2012) < http://www.austlii.edu.au/au/cases/cth/HCA/2012/8.html > at 28 March 2012
Australian Copyright Council, High Court Upholds 1% Cap on Broadcast Royalties for Sound Recordings (28 March 2012) < http://www.copyright.org.au/news-and-policy/details/id/2056/ > at 28 March 2012
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