Internet radio Station fees to Rise

Janice Brooks · From: Pleasant Gap Pa

On Friday March 2nd 2007, the Copyright Royalty Board announced new
royalty rates for Internet Radio stations. The rates are retroactive to
January of 2006.

The new rates are far higher than any industry experts expected. In
fact, if they remain unchanged, bankruptcy looms for many online radio
stations.

The new rates essentially levy a tax of $0.0011 per performance. Now,
that doesn't sound bad does it. But consider this. Each hour, the
average radio station plays 16 songs. So that's about 1.76c per hour,
per listener. A station with 500 listener average would be hit with fees
of $211 per day, $6,336 a month or $76,000 a year.

This amount of money is beyond the resources of all but the very
wealthiest of corporations. Many of the internet radio stations are run
by enthusiasts and hobbyists. These small stations are the ones bringing
new music, and old favorites to you every day. Music you can't hear on
corporate-owned terrestrial stations.

Could this be the day the music died?

John Macy · From: Rockport TX/Denver CO

The language also states:

For noncommercial webcasters, the fee will be $500 per channel, for up to 159,140 Aggregate Tuning Hours (one listener listening for an hour) per month. Noncommercial webcasters who exceed that level pay at the commercial rate for all listening in excess of that limit.

This is also the recomendations sent to the Library of Congress librarian, and not set in stone yet...

"The decision is subject to Motions that confidential information be redacted to the public, so it is not yet released for public review. A request for rehearing of this decision can be made by any party to the case within 15 days. The Board can also make technical corrections to the decision (not affecting the rate). The decision is to be published in the Federal Register within 60 days. Appeals may be filed with the US Court of AppeaIs in Washington, DC within 30 days of Federal Register publication. As this decision may well significantly impact webcasters, large and small, there is no doubt that more will be heard on this decision in coming months.

Ray Minich · From: Bradford, Pa. Frozen Tundra

When's the next flight to Mars?? This is getting ridiculous...

Marlin Smoot · From: Kansas

Here's an update:

Attorneys for National Public Radio (NPR) as well as the Corporation For Public Broadcasting (CPB) are in Washington this week, planning to take legal action to try to overturn a ruling from U.S. Copyright Royalty Judges that raised royalty fees for webcasters high enough for some to predict the demise of Internet radio, reports Internetnews.com.

"Right now the thought is that the initial response needs to be a legal response," NPR station WXPN GM Roger LaMay told Internetnews.com. The ruling NPR and CPB plan to fight in court was passed last week by a panel of judges charged by the U.S. Copyright Royalty Board with establishing the rate for a webcaster performance license.

"If this [ruling] were to go into effect, it's going to have public radio stations looking for ways to cut back what we do, as opposed to expanding," LaMay said. "Now, there is significant dis-incentive when you're talking about services that are committed to public service."

Commercial Internet radio broadcasters were equally upset. "Left unchanged, these rates would be disastrous," a spokesperson for commercial webcaster Pandora said. "It will not only end Internet radio, but will also stifle innovation as entrepreneurs and investors will abandon this space -- leaving a vacuum that will be quickly filled by illegal unlicensed services with no intention of creating legitimate businesses."

Tim Westergren, Pandora founder told Internetnews.com that his company plans to follow NPR and CPB into court.

Dave Mudgett · From: Central Pennsylvania and Gallatin, Tennessee

Your government hard at work. U.S. Copyright Royalty Board? I think they have the wrong idea about what "Royalty" means. Confused

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