Last week, Pandora co-Founder Tim Westergren spoke out against proposed legislation that would revamp Internet radio royalties. Instead of the Interim Fairness in Radio Starts Today (FIRST) Act proposed by Rep. Jerrold Nadler (D-NY), Westergren supports a bill by Rep. Jason Chaffetz (R-UT) which would set royalties for satellite radio and online radio at the same rate.

Now the New York Post reports that the musicFIRST Coalition is planning a campaign against the Chaffetz legislation, empowering its members to fight the proposed bill. The Chaffetz plan would lower Pandora's royalty rate. According to the Post, Pandora paid out $136 million in 2011 in royalties. Analyst Martin Pyykkonen tells the paper he expects Pandora's royalty payments to increase to roughly $148.7 million this year and $261.6 million by 2013. He believes that "the momentum is with Pandora. They’re asking for equality, not going to zero."

A spokesperson for musicFIRST told the Post, "They’re arguing they need a special deal, even while they become more profitable."