Court Denies Net Radio Increase. Broadcasters Respond As July 15th Deadline Looms.

The US Court of Appeals has declined to delay implementation of the Copyright Royalty Board’s recent decision to increase Internet radio sound recording royalty rates by up to 1200% and to impose a $500
per-channel “minimum fee” that will total more than $1 billion annually.  Webcasters’ first payments
under this new royalty are due July 15. 

Jonathan Potter, the Executive Director of the Digital Media Association which represents many broadcasters responded, “DiMA members and all webcasters are disappointed by the Court’s decision, and are now forced to make very difficult decisions about what music, if any, they are able to offer.  The result will certainly be fewer outlets for independent music, less diversity on the Internet airwaves, and far fewer listening choices for consumers. We’re hopeful that Congress will take steps to ensure that Internet radio is not silenced, and that webcasters and SoundExchange will find a way to compromise and maintain the diversity and opportunity of Internet radio.”

Several major net broadcasters like Live 365 and Radio Paradise have issued statements stating that they will continue to operate after July 15th with the hope that a solution can be found. Their best hope seems to be Internet Radio Equality Act (H.R. 2060 and S. 1353) which has been filed but not yet brought to a vote before Congress. 

SaveNetRadio.org is urging fans of internet radio to call their Congressmen immediately to urge that the bill is brought to the floor prior to July 15th. Info on how to call can be found here.

For more info: Radio And Internet News