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Public notice of disabling of access to SWcast services

April 18th

Scroll down for an update posted 4/29

In recent days, SoundExchange requested that access to Internet radio service SWCast.net be disabled by the hosting ISP in accordance with the provisions of the Digital Millennium Copyright Act and the ISP’s terms of service.

While regrettable, this step was necessary given SWCast’s repeated claims that it is a “provider of blanket music licensing and enhancement services” for online radio stations.  SWCast collected monthly fees from webcasters using its service, in exchange for (it claimed) satisfying all of the reporting and royalty obligations of its webcaster clients. Among the obligations specifically listed on its site are those reporting obligations and royalties paid to rights-holders by webcasters through SoundExchange. 

SWCast, however, does not provide the promised services.  Specifically, and despite its claims, SWCast has failed to abide by its obligations under the statutory license, did not pay anything to SoundExchange for years, and, as of the date of this letter, has not even attempted to make any payment to SoundExchange for any period after 2005.  SWCast has also never provided the reports of use that are clearly required by the statutory license.

SoundExchange repeatedly reached out to SWCast to seek its compliance, to no avail.  Accordingly, SoundExchange sent a letter requesting that the hosting ISP disable access to the SWCast site.  Individual webcasters who had been using SWCast’s services are free to rely on the statutory license going forward, either by submitting the necessary materials and payments to SoundExchange directly, or relying on a different third party service to submit such materials and payments on their behalf.  Learn more about SoundExchange’s Licensing 101.

Thousands of webcasters have been able to thrive and to provide valuable services to their listeners while operating legally under the statutory license. It’s unfair for SWCast or anyone else to use artists’ work without compensating them, and it’s unfair to the webcasters who believed they were abiding by the law.

We’re sorry that SWCast chose not to comply with the law, and we hope SWCast fans will find another (legal) provider by which to enjoy the tracks we all love. Meanwhile, we’ll be holding down the fort here, making sure that artists and copyright holders see returns on their hard work, and have the means to continue creating new music.

If you have any questions, please review www.soundexchange.com or feel free to contact our licensing and enforcement department at 202.559.0555 or L&E@soundexchange.com.

 

UPDATE: SWCast still has not made any royalty payments to SoundExchange for 2006-2011, it has never provided any reports of use as required by law. Note: NO progress has been made in the past weeks toward resolution of compliance. SoundExchange continues to ask that stations who had relied on SWCast indicate to us by May 6 how they intend to proceed under the statutory license.