Net radio isn't dead yet. SoundExchange, the organization responsible for collecting royalties from online broadcasters has reached an agreement with the Digital Media Association that will allow the music to keep playing, we think.

A quick history less:

Earlier this year, the U.S. Copyright Royalty Board voted to raise rates for internet broadcasters. In some cases, the new rates could have cost billions of dollars, driving pretty much every online radio station out of business. After months of contentious debate, SoundExchange agreed last month not to enforce the new rates until some sort of compromise could be reached.

Today's compromise involves a $500 cap per channel, with a $50,000 overall cap per service.

Webcasters will have to provide SoundExchange with a detailed annual list of songs performed and the Digital Media Association will work with SoundExchange to "evaluate the issue of streamripping." Presumably that means the two organizations will try to find ways to prevent users from making permanent copies of streaming audio files.

The new fees could still be a bit steep for small time webcasters. But today's announcement should keep larger companies like Pandora, Yahoo! Launch, and Last.fm piping out plenty cups of steaming hot internet music.

Webcasted radio has been taking it on the chin lately, with a proposal to institute insane royalty rates that would effectively spell the end of many popular broadcasters. Those royalty rates were supposed to go into effect this week, but a temporary reprieve and hopes of a new deal kept internet radio thumping along. Everyone sighed relief, but Ars Technica reports that the picture may not be so rosy after all.

SoundExhange, the royalty clearing house set up by the RIAA, has ferreted in a clause to the new agreement which would require DRM for licensed streaming audio. That means, simply put, that you won't be listening to internet radio on any platform SoundExchange doesn't like, or with any player not equipped with (and there for paying license fees to include) proprietary content protection schemes.

Pardon our language but, that just sounds yuckie.

Many Webcasters will wake up facing an uncertain future on Monday, thanks to conflicting messages coming from SoundExchange, the US royalty collection society for sound recordings.

The netcasting industry has been in a state of strife since the 1s oft May when the Copyright Broadcasting Board (CRB) announced new royalty rates for netcasters which amounted to a substantial increase in royalty rates for existing netcasters starting Monday 16 July. The new rates have been the subject of much negotiation between the society tasked with collecting the royalties, SoundExchange, smaller netcasters, who argue that they may go out of business if made to pay the new rates.

Speaking in front of the US Congress on Thursday the executive director of SoundExchange, Jon Simson, said that his organisation would not enforce the new royalty rates and would continue to negotiate with Webcasters concerning the rates.

Yet the failure of SoundExchange to reach a compromise solution with the small netcasters to date and conflicting statements in the media since Friday means that small netcasters are still uncertain about the rates they will be expected to pay on Monday and what measures SoundExchange will use to enforce the new rates.

On Friday, SoundExchange publicly repeated its offer for a $500 minimum per channel fee, with total channel cap of $50,000 per year for broadcasters providing that they give SoundExchange detailed reporting of their playlists and agreed to introduce mechanisms to stop digital recording of radio broadcasts.

While the statement from SoundExchange referred directly to payment requirements for large netcasters, it left open the subject of what rates smaller Webcasters would be subject to. Opponents of the new rates have pointed out that smaller netcasters will be hardest hit by the new rates, while the impact on larger companies such as AOL and Yahoo will be fiarly minimal.

'We do expect commercial webcasters like Yahoo! and AOL to pay the new royalty rates set by the CRB due July 15,' Simson stated on Friday. ''It is essential that recording artists and content owners receive full and fair compensation from the webcasters making use of their creative works.'

It is likely tthat SoundExchange's statements late last week were designed to put further pressure on smaller Webcasters to come to an agreement, however that's unlikely to provide fans of netcasting with much assurance that their favourite services are still going to be available after Monday.

New royalty rates affecting online radio stations are set to take effect Sunday. But SoundExchange, the group responsible for collecting those royalties now says it will not enforce the new rates.

The news came out of a Congressional hearing on Thursday, and follows months of heated discussions. Webcasters say the new rates are high enough to put almost every internet radio station out of business. A coalition of webcasters held a day of silence protest last month, and Congress is considering legislation that would change the way rates are calculated.

SoundExchange says it will not enforce the new fees until a new agreement can be reached that would let stations like Pandora, Last.fm, and Radio Paradise remain on the air.

Later this month, new music royalty rates are scheduled to rock the world of internet radio. The rates are calculated in such a way that some online broadcasters say they would have to pay millions, or even billions of dollars in order to stay online.

While Congress is considering action that would change the way royalty rates are calculated, it looks like SoundExchange, the nonprofit acting on behalf of the record labels is willing to offer a compromise.

In a nutshell, the new rates include a minimum $500 payment per channel. That's fine if you've just got a single webstream. But if you're a company like Yahoo! or Pandora that operates by offering each user a customized music stream, you might have to pay $500 for each stream, to the tune of millions of dollars.

SoundExchange is offering to cap the minimum payment at $2500. But the offer's only good through 2008, while the new royalty rates don't expire until 2010. The Digital Media Association, which represents webcasters issued a press release stating that the group would accept the new rates -- but only if they are extended through 2010. And the beat goes on.