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My rep introduces bill to save Internet radio
Posted by AdvancedAndrew in on April 27, 2007 at 4:59 PM



U.S. Reps. Jay Inslee (D-Wash.) and Don Manzullo (R-Ill.) filed legislation that would reverse a recent decision of the federal Copyright Royalty Board (CRB) to at least triple the amount of royalties Internet radio broadcasters pay to copyright holders for playing a song.

In March, the CRB drastically increased royalty rates for webcasters - starting retroactively at $0.0008 per song in 2006 and climbing to $0.0019 per song in 2010. Though it costs only fractions of a penny per song, the change amounts to a 300 percent cost increase for the largest webcasters and up to a 1200 percent increase for smaller operations.

"This Titanic rate increase is simply untenable for many Internet radio broadcasters," said Inslee, a member of the House Energy and Commerce Subcommittee on Telecommunications and the Internet.

"You can't put an economic chokehold on this emerging force of democracy," he added. "There has to be a business model that allows creative webcasters to thrive and the existing rule removes all the oxygen from this space."

"The Internet has provided us with amazing opportunities to enjoy music, and this unfair action by the CRB threatens to take it all away," Manzullo said. "Our legislation overturns the huge rate increases and sets up a system that is fair to webcasters, web users and the artists whose music we all enjoy. And most importantly, it will keep music playing on the Internet."

The Inslee-Manzullo Internet Radio Equality Act would provide royalty parity for Internet radio providers. It would vacate the CRB's March 2 decision and apply the same royalty rate-setting standard to commercial Internet radio, as well as satellite radio, cable radio and jukeboxes. A transition rate of 7.5 percent of revenue would be set through 2010.

According to Nielsen Media Research, 70 million Americans listen to online radio each month. Inslee and Manzullo already have received over 1000 letters and e-mails this month opposing the CRB's decision.


User Comments

Hiphopaflunky
Date: April 29, 2007 @ 7:23 PM
Hope it passes, I don't want to be out of the 'Job'
DMembercaptain-crush
Date: April 29, 2007 @ 7:45 PM
Problem is, the RIAA WILL fight this tooth and nail and we all know they will use unfair and almost illegal tactics to get what they want.
DMembermononominal
Date: April 30, 2007 @ 4:58 AM
The RIAA has probably been tracking the online activity of the children and grandchildren of all members of Congress. When the time comes for them to vote on the bill - well, they will have to keep in mind the "or else" threat to sue their kids.
AdvancedPhantomGhost
Date: May 2, 2007 @ 3:28 AM
We are up against the RIAA. But they are a corporate clique, we are the people. We need to make our voices heard loud and clear.
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