IAM Sets Industry Standard with Digital Licensing Agreement
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Under the arrangement, Warner Music and its artists will receive all royalties generated from the broadcasting of its artists on the IAM network, where previously no royalty on digital broadcasting has existed.
IAM chief executive officer Brian Harris said that while the licensing agreement with Warner Music was not necessary under existing legislation, IAM believed it was an important step in legitimizing the medium of online radio and cementing relationships between suppliers and broadcasters.
Warner Music Australia's finance and business affairs director, Gary Smerdon, said the licensing agreement with IAM recognized the emergence of net radio as a viable business.
"This kind of agreement may well prove a model for the rest of the industry. By establishing a voluntary framework now, we can protect the intellectual copyright of our artists, support a growing industry, and avoid unnecessary regulation at a later date," said Smerdon."
Both IAM and Warner said they expected to negotiate licensing agreements with other music companies and broadcasters respectively.
InterActive Media Network has since announced the name of its first online radio station - bigfatradio, which will begin broadcasting later this month.