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Congress Introduces Bill In Net Radio Royalty Debate
April 26, 2007

Congress has gotten involved in the ongoing fight to raise royalty rates for Internet broadcasters. Congressmen Jay Inslee (D-WA) and Don Manzullo (R-IL) have introduced the Internet Radio Equality Act, in an attempt to stop the Copyright Royalty Board's decision to increase the rates. The legislation is said to "modernize" the copyright rules, putting royalties paid by public broadcasters of "sound recordings" under the same system as "musical works."

Organizations who have been fighting the CRB decision have reacted favorably to the bill. Andi Sporkin of NPR says, "This bill asks Congress to reinforce its historic acknowledgement that public broadcasting has a place in the media landscape by modernizing section 118 of the Copyright Act for the 21st century. The CRB Board would not consider the public service aspect of more than 800 stations across the country when it made its recent decision. But since 1976, Section 118 has recognized that public radio has a very different mission from commercial media and cannot pay commercial-level royalty rates. This bill will provide a long term resolution that is fair for all sides.”

Jake Ward of SaveNetRadio added, "Since the CRB's March 2nd decision to dramatically and unfairly increase webcaster royalty rates, millions of Internet radio listeners, webcasters and artists have called on Congress to take action. Today Congress took notice, and we thank Mr. Inslee for leading the charge to save music diversity on the Internet."

NAB Executive VP Dennis Wharton said in a statement, "NAB is reviewing details of Rep. Inslee's bill, which would overturn the Copyright Royalty Board's disappointing decision to dramatically raise fees for companies that stream music over the Internet. We will work with Congress to craft a solution that helps ensure the survival of a fledgling audio platform."




 
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