New Webcasting Fees May Doom Internet Radio

Do you want to pay 19 cents for every song you hear on the internet? That is what is coming if the latest ruling from a Judicial governing board takes full effect. Now you may think that this may be good for you as a content producer, but that may bankrupt the people's media, the classic case of killing the goose that lays the golden egg. And such subscriber fees may kill webcasts, because who want to be charged for what comes over the air for free?

Internet radio listeners, Webcasters and artists, say the decision will cripple the Internet radio medium by bankrupting it. The ruling would even force internet radio to pay for previous webcasts. Help may be on the way, a new House of Representatives bill that would invalidate the board's decision in favor of setting a level rate for all digital music services, including satellite, cable and Internet radio and Internet-based jukeboxes.

A group called SaveNetRadio, said in a statement Tuesday that it would spend the next 45 days lobbying Congress to enact a new bill. "We feel strongly that Congress could not possibly have intended a structure whereby Internet radio services pay 60% to 300% of their revenue in royalties," In a 32-page final rule (PDF) formally published Monday, the three-judge panel of the Library of Congress marked July 15 as the date when the new royalty rates required of Net radio operators will kick in--two months later than the original deadline, originally ordered by the panel on March 2nd. The outcry from the public has affected the board but only in timing, and not outcome.

According to the internet broadcasters, only a new bill can solve the problem. The future of Internet radio is in immediate danger. Royalty rates for webcasters have been drastically increased by this recent ruling and were due to go into effect on July 15 (retroactive to Jan 1, 2006!). If the increased rates remain unchanged, the majority of webcasters will go bankrupt and silent on this date. Internet radio needs your help! H.R. 2060, The Internet Radio Equality Act was introduced by Representatives Jay Inslee (D-WA) and Donald Manzullo (R-IL ) to save the Internet radio industry.

If you believe in the future of our new medium, please contact your Congressman and express your will.

The courts may also have a say in the debate, as the formal publication of the CRB (Library of Congress) decision in the Federal Register opened a 30-day period for notices of appeal. National Public Radio reported late Monday that the Savenetradio organization still intends to take such a step.

Source: Savenetradio.org NPR.org