The new fee structure means webcasters much pay a flat fee for each song streamed on a per user basis. The fees, which would more than double over the next few years, are costly enough to knock out some of the smaller webcasters. The CRB recently rejected arguments made by the webcasters and only decided to allow webcasters to pay royalties based on average listening hours through 2008.
SoundExchange, which is in charge of collecting royalties, feared congressional action and said it would allow smaller webcasters to keep paying the same rates through 2010, but larger webcasters would have to get used to the new rates starting in July. Webcasters were not impressed by the offer, saying it throws larger webcasters "under the bus" and ensures that Internet Radio will never compete with satellite or terrestrial radio.
Rep. Jay Inslee (D-WA) introduced the Internet Radio Equality Act that would put a stop to the CRB changes and would keep the current system in effect. However, there is no guarantee it would be passed before the new rates go into effect so an emergency stay is the best option that webcasters can seek right now.
Source:
Ars Technica
Written by: James Delahunty @ 2 Jun 2007 13:28
