A post at hardcoreinsomniaradio.blogspot.com says:
A message for my good ole friends @ the RIAA...I never intend to profit from the bands I adore. Just the opposite: I'm encouraging my listeners to buy the bands's songs or CD's if they happen to enjoy what they hear. It's free advertising for your bands...
As noteworthy as that sounds, the problem in not that his podcast makes no profit. The problem - as the RIAA sees it - is that the artist(s) they represent did not receive a royalty for the distributed work. And as bitter as it may taste, until copyright laws are revised or rewritten, this is what we all must live with.
Recent announcements of intention to podcast and the actual launching of podcasts by several large commercial Radio companies has also caused the RIAA pause. Even though these companies are simply offering portions of programming already available on their airwaves, think back to when AM and FM stations first discovered Internet streaming.
Everyone jumped on the bandwagon until the RIAA stepped in and said, “Sorry, but that’s going to be an extra fee.” Immediately, many commercial radio station audio streams went dark. Copyright law was on the RIAA’s side and finally a structure for collecting royalties was negotiated – and not just for commercial companies but for anyone who wanted to create an Internet-based radio station.
Large broadcast group or individual, you are still liable for royalites. Today, when you sign up at Live365.com to launch your own station, you are required to select a plan that automatically includes a fee Live365.com pays to SoundExchange unless you declare that you legally will not be using copyrighted material you have no rights to. (According to John L. Simson, Executive Director of SoundExchange, "SoundExchange is an independent 501(c)(6) organization that represents the interests of sound recording copyright owners and performers and is the sole entity designated by the US Copyright Office to collect statutory royalties.")
The only encouraging news here for podcasters is that the fees for non-profit organizations and small Internet radio broadcasters is less than for the Net-based stations making a profit from large listening audiences. A similar structure would most likely be adopted for the podcasting world.
But, for the moment podcasters are getting a free ride. This won’t last long. File sharing is file sharing, no matter whether you use LimeWire (disabled by court order October/2010), WinMX, eDonkey, or do it through a podcast. As I replied to a poster in a podcaster discussion group who disagreed with me, "follow the money" - it will always lead you to the real answer.
