Printed from http://www.electronista.com

Internet radio stations earn royalty reprieve

updated 06:05 pm EDT, Tue May 22, 2007

Internet radio reprieve

A record industry group that collects royalties from Internet and satellite radio, SoundExchange, has agreed to defer the royalty payments of smaller Internet stations. The US Copyright Royalty Board (CRB) has ruled that as of May 1st 2007 and retroactive to January 1st 2006, Internet broadcasters are eligible for paying much higher fees per song; since many stations operate on little or no profit, however, the ruling would effectively kill networks such as SomaFM.

Reuters notes that unfortunately for those affected, the deferment may only be temporary. "Although the rates revised by the CRB are fair and based on the value of music in the marketplace," says SoundExchange director John Simson, "there's a sense in the music community and in Congress that small Webcasters need more time to develop their businesses."

A spokesman for the SaveNetRadio Coalition, Jake Ward, also complains that the only pardoned radio stations are those earning less than $1.25 million per year. He argues that many companies earning even that amount are in a fragile state, and might be encouraged to deliberately sabotage their incomes to avoid royalties.

Over 80 members of the US Congress are supporting the Internet Radio Equality Act, which would render the CRB's decision null and void.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Tablo DVR

With over-the-top content options growing past Hulu and Netflix, consumers may be finding it harder to justify paying a monthly fee fo ...

Sound Blaster Roar Bluetooth speaker

There could very well be a new king of the hill for Bluetooth speakers, with Sound Blaster's recent entry into the marketplace. Bringi ...

Kenu Airframe Plus

Simple, stylish and effective, the Kenu Airframe + portable car mount is the latest addition to Kenu's lineup. Released earlier this y ...

Sponsor

toggle

Most Commented

 
toggle

Popular News