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New Technology Challenges to Copyright Quiz

12 questions economics Grades 9-12

The question sheet

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  1. Which body sets royalty rates for streaming and satellite music?

    • The Copyright Royalty Board
    • SoundExchange
    • The Supreme Court
    • Billboard magazine
    Reveal answer

    Answer: The Copyright Royalty Board

    Source evidence

    PDF page 130: Rates are set by the federal Copyright Royalty Board (CRB), a three-judge panel, but currently they apply a different rate for streaming music than they do for satellite and cable music. Sirius pays about 8 percent of its revenue to record companies and artists. Pandora, however, claims it must pay a rate per song streamed that amounts to 44 percent of revenue. So it pushed for the introduction in September 2012 of the Internet Radio Fairness Act, which would make the rates for Internet radio companies the same as those for satellite and cable radio.

  2. How many judges make up the Copyright Royalty Board?

    • Three
    • Nine
    • Two
    • Five
    Reveal answer

    Answer: Three

    Source evidence

    PDF page 130: Rates are set by the federal Copyright Royalty Board (CRB), a three-judge panel, but currently they apply a different rate for streaming music than they do for satellite and cable music. Sirius pays about 8 percent of its revenue to record companies and artists. Pandora, however, claims it must pay a rate per song streamed that amounts to 44 percent of revenue. So it pushed for the introduction in September 2012 of the Internet Radio Fairness Act, which would make the rates for Internet radio companies the same as those for satellite and cable radio.

  3. About what percent of revenue does Sirius pay to record companies and artists?

    • 44 percent
    • 80 percent
    • 14 percent
    • 8 percent
    Reveal answer

    Answer: 8 percent

    Source evidence

    PDF page 130: Rates are set by the federal Copyright Royalty Board (CRB), a three-judge panel, but currently they apply a different rate for streaming music than they do for satellite and cable music. Sirius pays about 8 percent of its revenue to record companies and artists. Pandora, however, claims it must pay a rate per song streamed that amounts to 44 percent of revenue. So it pushed for the introduction in September 2012 of the Internet Radio Fairness Act, which would make the rates for Internet radio companies the same as those for satellite and cable radio.

  4. According to Pandora, its per-song rate amounted to what share of revenue?

    • 8 percent
    • 17 percent
    • 44 percent
    • 25 percent
    Reveal answer

    Answer: 44 percent

    Source evidence

    PDF page 130: Rates are set by the federal Copyright Royalty Board (CRB), a three-judge panel, but currently they apply a different rate for streaming music than they do for satellite and cable music. Sirius pays about 8 percent of its revenue to record companies and artists. Pandora, however, claims it must pay a rate per song streamed that amounts to 44 percent of revenue. So it pushed for the introduction in September 2012 of the Internet Radio Fairness Act, which would make the rates for Internet radio companies the same as those for satellite and cable radio.

  5. When was the Internet Radio Fairness Act introduced?

    • November 2013
    • December 2015
    • June 2014
    • September 2012
    Reveal answer

    Answer: September 2012

    Source evidence

    PDF page 130: Rates are set by the federal Copyright Royalty Board (CRB), a three-judge panel, but currently they apply a different rate for streaming music than they do for satellite and cable music. Sirius pays about 8 percent of its revenue to record companies and artists. Pandora, however, claims it must pay a rate per song streamed that amounts to 44 percent of revenue. So it pushed for the introduction in September 2012 of the Internet Radio Fairness Act, which would make the rates for Internet radio companies the same as those for satellite and cable radio.

  6. Who published an open letter in Billboard opposing Pandora's plan?

    • Aereo subscribers
    • Musicians and singers
    • Copyright judges
    • Cable company executives
    Reveal answer

    Answer: Musicians and singers

    Source evidence

    PDF page 130: This bill was opposed not only by many musical artists and their organizations, but by many copyright experts as well. In November of 2012, a who’s who of musicians and singers—including stars from Motown, rock and roll, country, rap, and jazz—published an open letter in Billboard magazine opposing Pandora’s plan to cut artists’ pay and make more money, as they put it in the letter, “on the backs of hard working musicians and singers.” In November of 2013, Pandora quietly abandoned efforts to seek legislation that would help reduce the royalties paid to rights holders. Instead of pursuing legislation, Pandora said it will focus its efforts on lobbying

  7. In November 2013, what did Pandora do about its legislative efforts?

    • Quietly abandoned them
    • Filed for bankruptcy
    • Won new legislation
    • Doubled its royalty rate
    Reveal answer

    Answer: Quietly abandoned them

    Source evidence

    PDF page 130: This bill was opposed not only by many musical artists and their organizations, but by many copyright experts as well. In November of 2012, a who’s who of musicians and singers—including stars from Motown, rock and roll, country, rap, and jazz—published an open letter in Billboard magazine opposing Pandora’s plan to cut artists’ pay and make more money, as they put it in the letter, “on the backs of hard working musicians and singers.” In November of 2013, Pandora quietly abandoned efforts to seek legislation that would help reduce the royalties paid to rights holders. Instead of pursuing legislation, Pandora said it will focus its efforts on lobbying

  8. What statutory rate did Pandora petition the CRB to reduce to?

    • 25 cents per 100 songs
    • 17 cents per 100 songs
    • 14 cents per 100 songs
    • 11 cents per 100 songs
    Reveal answer

    Answer: 11 cents per 100 songs

    Source evidence

    PDF page 131: In early December 2015, the music industry waited breathlessly for the CRB’s decision on royalty rates. Pandora had petitioned the CRB to reduce the current statutory rate of 14 cents per 100 songs to 11 cents per 100 songs starting in 2016. But music labels and artists represented by a royalty collection organization called SoundExchange wanted the statutory royalty rate raised to 25 cents per 100 songs—an 80 percent increase—and then by 1 cent every year after that until 2020. Collectively, music streaming services have a combined listenership of 100 million people and are the fastest-growing revenue source for artists and music labels. On December 16, 2015, in a victory for record labels and artists, the CRB ruled that online radio firms will have to pay 17 cents per 100 plays of songs through 2020.

  9. What rate did SoundExchange want, an 80 percent increase?

    • 14 cents per 100 songs
    • 17 cents per 100 songs
    • 25 cents per 100 songs
    • 11 cents per 100 songs
    Reveal answer

    Answer: 25 cents per 100 songs

    Source evidence

    PDF page 131: In early December 2015, the music industry waited breathlessly for the CRB’s decision on royalty rates. Pandora had petitioned the CRB to reduce the current statutory rate of 14 cents per 100 songs to 11 cents per 100 songs starting in 2016. But music labels and artists represented by a royalty collection organization called SoundExchange wanted the statutory royalty rate raised to 25 cents per 100 songs—an 80 percent increase—and then by 1 cent every year after that until 2020. Collectively, music streaming services have a combined listenership of 100 million people and are the fastest-growing revenue source for artists and music labels. On December 16, 2015, in a victory for record labels and artists, the CRB ruled that online radio firms will have to pay 17 cents per 100 plays of songs through 2020.

  10. On December 16, 2015, what rate did the CRB set through 2020?

    • 14 cents per 100 plays
    • 25 cents per 100 plays
    • 11 cents per 100 plays
    • 17 cents per 100 plays
    Reveal answer

    Answer: 17 cents per 100 plays

    Source evidence

    PDF page 131: In early December 2015, the music industry waited breathlessly for the CRB’s decision on royalty rates. Pandora had petitioned the CRB to reduce the current statutory rate of 14 cents per 100 songs to 11 cents per 100 songs starting in 2016. But music labels and artists represented by a royalty collection organization called SoundExchange wanted the statutory royalty rate raised to 25 cents per 100 songs—an 80 percent increase—and then by 1 cent every year after that until 2020. Collectively, music streaming services have a combined listenership of 100 million people and are the fastest-growing revenue source for artists and music labels. On December 16, 2015, in a victory for record labels and artists, the CRB ruled that online radio firms will have to pay 17 cents per 100 plays of songs through 2020.

  11. Collectively, music streaming services had a listenership of about how many?

    • 500 million people
    • 100 million people
    • 50 million people
    • 10 million people
    Reveal answer

    Answer: 100 million people

    Source evidence

    PDF page 131: In early December 2015, the music industry waited breathlessly for the CRB’s decision on royalty rates. Pandora had petitioned the CRB to reduce the current statutory rate of 14 cents per 100 songs to 11 cents per 100 songs starting in 2016. But music labels and artists represented by a royalty collection organization called SoundExchange wanted the statutory royalty rate raised to 25 cents per 100 songs—an 80 percent increase—and then by 1 cent every year after that until 2020. Collectively, music streaming services have a combined listenership of 100 million people and are the fastest-growing revenue source for artists and music labels. On December 16, 2015, in a victory for record labels and artists, the CRB ruled that online radio firms will have to pay 17 cents per 100 plays of songs through 2020.

  12. What did Aereo rent to subscribers for $8 per month?

    • Digital video recorders
    • Cable boxes
    • Dime-sized antennas
    • Satellite dishes
    Reveal answer

    Answer: Dime-sized antennas

    Source evidence

    PDF page 131: Another new technology challenge to copyright involved television broadcasters and an upstart television service called Aereo that at one point rented dime-sized antennas for $8 per month that act like long-range rabbit ears to people with digital video recorders, enabling them to watch and record over-the-air network channels like NBC or Fox without paying the much-larger fees for cable or satellite service.

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Source

Introduction to Intellectual Property

Introduction to Intellectual Property by OpenStax, used under CC BY 4.0. Changes made by Stratacademy.

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