Royality fee ruling threatens internet radio

Online broadcasters challenge price hike - Yahoo! News

On Monday broadcasters and online companies challenged a March 2 ruling that from a panel of copyright judges called the (U.S. copyright Royalty Board) to increase the amount of royalties that online music broadcasters would have to pay to record labels. The ruling would also require radio companies to track how many songs were listened to by exactly by how many individuals online.

NPR argued that the new rules would have a "Crippling effects" on public radio and it also objected to a $500 per-channel minimum fee. Clear Channel also disagreed with the ruling stating that the method of calculating fees was faulty.

Sound Exchange, an entity that collects royalties from digital music broadcasters and distributes rights naturally agreed with the ruling pointing out that ad revenues grew from $50 million in 2003 to $500 million last year.

This ruling is sure to kill several small time Radio Stations and college radio station who often play little tiny local bands before they get their break and our played on the corporate radio station again and again because the record company is paying he station to keep the beet bouncing around in our brains.

On March 21st the Copyright Royalty Board granted a rehearing hearing of their royalty rate decision of Internet radio. Arguments are to be submitted by April 2.