Australia’s Government Supports Further Investigation Into ‘Radio Caps’

SYDNEY, Australia — After years of lobbying by the music industry, with support from several high-profile senators, the Australian government will support further investigation into the so-called “radio caps” — the controversial licence fees paid by radio broadcasters for the use of sound recordings. The caps were legislated over 55 years ago, in the 1968 Copyright Act. Its critics say the rules prevent the recording industry from negotiating a new, higher rate on those sound recording royalties paid by commercial radio, a sum fixed at 1% of gross industry revenue.

Related New Levels Strike Global Partnership With Virgin Music Group, Signs Hooligan Hefs & More Lars Brandle Now, the federal government has thrown support behind a cost-benefit analysis into removing the current caps. “Removing the 1% cap is simply the right thing to do. It’s impossible to defend an artificial cap set as a short-term measure over 40 years ago,” says PPCA chair and ARIA Award-winning artist Josh Pyke singer and songwriter.

“Artists and rights holders deserve the right to negotiate free of this artificial constraint.” Currently, commercial radio stations...