Copyright Royalty Board Sets Satellite Radio Performance Fees

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Washington - Dec 3, 2007 - The Copyright Royalty Board (CRB) issued its determination and order setting the royalty rate payable by XM Satellite Radio and Sirius Satellite Radio under the statutory license covering the performance of sound recordings over XM and Sirius for the six-year period starting Jan. 1, 2007 and ending Dec. 31, 2012. Under the terms of the CRB Satellite Radio Services, the satellite providers will pay a performance license rate of 6 percent of the gross revenues subject to the fees for 2007 and 2008, 6.5 percent for 2009, 7 percent for 2010, 7.5 percent for 2011 and 8 percent for 2012.

The revenue that is subject to royalty fees includes subscription revenue from subscribers and advertising revenues from channels other than those that use only incidental performances of music. Other exclusions and deductions from revenue subject to the statutory license fee include but are not limited to revenue from channels, programming and products or other services offered for a separate charge where such channels use only incidental performances of sound recordings, revenue from equipment sales, revenue from current and future data services, fulfillment service fees and bad debt expense.

The two providers have until Dec. 15 to move for rehearing.

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