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Net Radio gets two more months to live

savenetradioThe Copyright Royalty Board has delayed implementation of the new royalty rates on internet broadcasters that had been set to take effect May 15th. The new rates will now be effective on July 15th, giving netcasters a few more months to try to reach a deal to prevent the coming apocalypse.

Basically, internet radio producers say the new rates would be so high that most online radio services would be put out of business.

Meanwhile, a bill has been introduced in Congress that could reverse the Copyright Royalty Board decision and establish a new system for setting royalty rates.

The SaveNetRadio coalition says it will use the new two-month reprieve to lobby Congress in support of the bill.

Bill introduced to save internet radio

PandoraCongressman Jay Inslee and eight cosponsors have introduced the Internet Radio Equality Act, designed to combat the recent rate hike implemented by the Copyright Royalty Board.

If no action is taken, royalty rates on internet music broadcasts will jump significantly on May 15th, potentially putting many small netcasters out of business.

Among other things, the new bill would:
  • Nullify the Royalty Board decision.
  • Change the arbitration process for internet radio rate setting.
  • Establish that the minimum annual royalty a netcaster has to pay can be no higher than $500.
  • Set a transitional royalty rate that is the same as the rate paid by satellite broadcasters.
The bill gives the save net radio crowd a chance to rally behind a specific action. Up until now, they'd been asking folks to write their local members of Congress to demand action. Now they're asking for people to call legislators and ask them to support the bill.

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