Commercial Radio License Appeal Rejected By High Court

The Australian High Court has rejected an appeal from Commercial Radio Australia [CRA] to overturn a Federal Court decision that has made them liable to pay licensing fees on internet streaming radio broadcasts to copyright holders.

The Phonographic Performance Company Of Australia [PPCA] claimed the significant legal win in February and the High Court's decision to reject CRA's leave application, a stepping stone to having an appeal heard, means the matter has exhausted its legal avenues.

The case has been ongoing for over four years and has found that internet simulcasts are not included in the 1968 Copyright Act's definition of “broadcast” and as such license fees will need to be paid on those streams – on top of the existing broadcast fees.

Today PPCA CEO Dan Rosen said, “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.”

CRA CEO Joan Warner declined to comment to theMusic.com.au today, but after the Federal Court decision earlier this year she told theMusic that she was “disappointed” with the decision and that they were looking “at all options”.

Another consequence is that the simulcast fees are not subject to the controversial '1% cap' that exists in the Copyright Act and PPCA – the non-profit which collects license fees for public performance and broadcasting of copyrighted recordings – can now seek “commercial market rates” for those fees. The one percent cap restricts commercial radio payments to one percent of their gross income.

The PPCA had their '1% cap' appeal thrown out by the high court last year but today said they would continue to campaign for its abolishment. They cited a recent Australian Law Reform Commission discussion paper, which suggested “there appears to be a strong case for repeal of the one percent cap.”

Rosen added today, “For too long radio has had a free kick – driving listening audience numbers and profits via the internet while not paying artists fairly for use of their recordings.”