Via Shiv at WOXY: The demise of Internet radio and webcasting might be imminent. Check out more information here; in a nutshell, a petition to delay a substantial increase in royalties was denied by federal courts, meaning that webcasters must shell out more money effective Sunday, July 15. From the article:
The Copyright Royalty Board, an obscure group of federal judges, set the new rates in March, eliminating a provision that allowed small webcasters to pay 10% to 12% of their revenues instead of a set per-song fee for every listener. The current rate of .0762 of a cent each time a song is played will more than double by 2010, and many Internet radio stations will face royalty payments greater than their revenues.
Many individuals make little or no money through their online stations, so the decision made webcasting prohibitively expensive.
Although the federal appeals court panel declined to stop the rate hike before it kicked in, an appeal is still pending before the court. Congress also is considering legislation that would halt the increase, although it could be months before it comes up for a vote.
In the meantime, webcasters are negotiating with SoundExchange, the organization that collects and distributes Internet music royalties. It has the power to strike separate deals.
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