In a bipartisan effort, US Representatives have some together to introduce a bill that reverses a recent decision of the CRB that would cost Internet radio operators big money to play music
By: Captain Maverick
Apr 27, 2007 01:52 AM GMT
Hands reached across the isle in a bipartisan effort by U.S. Representatives Jay Inslee (D-Washington) and Don Manzullo (R-Illinois) to reduce the costs to small Internet radio operators. Reps Inslee and Manzullo have introduced legislation that would reverse a recent decision of the Copyright Royalty Board (CRB) that would nearly triple the amount of royalties that Internet radio broadcasters would have to pay to play music.
Earlier this month, the CRB approved a rule that would force commercial Internet radio stations, regardless of their size, to pay new higher flat fees to the record labels each and every time a song is played. This means that royalty rates for Web-casters would start retroactively at $.0008 per song in 1996 and will climb to $.0019 per song by 2010. As it currently stands, the CRB rules would go into effect on May 15th.
In a statement released Friday, Re. Inslee said that the Titanic rate increase is simply untenable for most Internet radio broadcasters. Rep. Manzullo said "The Internet has provided us with amazing opportunities to enjoy music, and this unfair action by the CRB threatens to take it all away and our legislation overturns the huge rate increases and sets up a system that is fair to Web-casters, Web users, and the artists whose music we all enjoy. And most importantly, it will keep music playing on the Internet."
The legislation is known as the Inslee-Manzullo Internet Radio Equality Act, and it vacates the CRB's March 2 decision and proposes Net radio stations continue paying a percentage (7.5 percent) of revenues through 2010. Alternatively, the bill would allow Net broadcaster to choose to pay 33 cents per hour of sound recordings transmitted to a single user. This is much better than the estimated 60 percent of revenue that some Web-casters say they will have to pay under the CRB plan.
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