SoundExchange Royalty Rate Setting Proceeding

Compass Lexecon’s Janusz Ordover provided testimony on behalf of SoundExchange in a matter before the Copyright Review Board (CRB) to determine digital performance royalty rates for webcasters for the 2011-2015 period. Professor Ordover’s analysis and testimony focused on the question of whether rates already negotiated and agreed to by SoundExchange and certain webcasters, most notably the National Association of Broadcasters and Sirius-XM, offered probative evidence of the range of rates that would be obtained under the willing buyerwilling seller standard that the CRB, by statute, is required to follow. The CRB judges, citing Professor Ordover’s opinions favorably, determined a rate schedule roughly in-line with the schedule put forward by SoundExchange, and substantially greater than the rate put forward by the petitioner (Live365). Compass Lexecon was retained by David Handzo of Jenner & Block. Professor Ordover was assisted by Doug Fontaine and Assaf Eilat in Compass Lexecon’s Oakland office.