[Dixielandjazz] Major update in the Internet Radio Royalty scam

[David Richoux]

Not great news, but good news!
(this is a forward from my radio station list - I cannot verify all  
the legal stuff.)
Dave Richoux

<http://arstechnica.com/news.ars/post/20070502-internet-radio-royalty- 
hike-delayed-last-chance-to-petition-congress.html>

Internet radio royalty hike delayed; last chance to petition Congress

By Jacqui Cheng | Published: May 02, 2007 - 11:14PM CT
Internet radio will remain safe and sound, at least through July of  
this year, on account of a new decision by the US Copyright Royalty  
Board. Under the CRB's original ruling, Internet radio stations would  
have had to begin paying retroactive royalties on May 15, thereby  
knocking many of them offline due to the crippling fees. The new  
date, July 15, 2007, is two months later than the original deadline  
set by the CRB and offers some reprieve for Internet radio stations  
hoping for a miracle (or Congress) to reverse the CRB's decision.
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<http://arstechnica.com/news.ars/post/20070320-npr-fights-back-seeks- 
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The original ruling by the CRB caused widespread outrage from  
Internet broadcasters and listeners alike. The ruling said that every  
Internet radio station—even nonprofit stations and those that serve  
the public—must pay heavily-increased royalty fees to royalty  
collection entity SoundExchange. The rate hike involved a $500 annual  
fee for each channel owned by a station and a royalty for every song  
played per connected user at the time of the song's broadcast. The  
CRB ruled that Internet radio stations would have to pay retroactive  
fees on the new rates to cover 2006 and 2007, as well.
National Public Radio spearheaded an appeal against the CRB's ruling,  
arguing that the newly-proposed fees for Internet broadcasters were  
so high that they would cripple nearly all of the currently-available  
radio stations on the 'Net. The organization also reasoned that the  
fee would be impossible for broadcasters to calculate and begged the  
CRB to reconsider the formulas for calculating its new fee structure.

The CRB rejected the appeal several weeks later and upheld every part  
of the original ruling, save for how royalties would be calculated.  
Instead of charging a royalty for each time a song is heard by a  
listener, the broadcasters would be able to pay fees based on average  
listening hours through 2008. However, the new formula would still  
yield fees crippling most 'Net radio stations and force them offline  
once retroactive fee collection started on May 15.

The new date issued by the CRB gives Internet radio stations two more  
months before having to pay the retroactive fees for the past year  
and a half.

One lobby group, SaveNetRadio, pledged to spend the next 45 days  
"educating Congress" on why 'Net radio should stick around. "We feel  
strongly that Congress could not possibly have intended a structure  
whereby Internet radio services pay 60 percent to 300 percent of  
their revenue in royalties while satellite radio pays 5 to 7 percent  
and broadcasters pay zero," said the group in a statement. "We urge  
them to support HR 2060."

HR 2060 is, of course, the Internet Radio Equality Act. It was  
introduced in April by Representatives Jay Inslee (D-WA) and Don  
Manzullo (R-IL) and would essentially reverse the CRB's decision,  
returning Internet radio to its previous, percentage-based fee  
structure that is similar to that of satellite radio. While Internet  
radio stations and supporting groups didn't have much time to lobby  
Congress when the bill was initially introduced, the deadline  
extension by the CRB could give groups like SaveNetRadio just enough  
time to, fittingly, save 'Net radio.

If Internet radio stations are important to you, we urge you to  
contact your Representative and let him or her know that you support  
the Internet Radio Equality Act.