New legislation was introduced today to the U.S. Senate, which could wipe out the Copyright Royalty Board (CRB) decision on Internet radio royalty rates. Senators Ron Wyden (D-OR) and Sam Brownback (R-KA) have introduced the Internet Radio Equality Act, which would vacate the CRB decision on increasing royalty fees. The bill would set a 2006-2010 royalty rate for webcasters at the same rate currently paid by satellite radio (7.5 percent of revenue). The bill also proposes a change in the rate setting standard used in royalty arbitration, to closer align Internet radio standards in negotiations with satellite radio. Also, the bill resets the royalty rules for noncommercial stations.
Sen. Wyden said in a statement, "Keeping Internet radio alive is part of a broader issue that is important to me -- keeping the e-commerce engine running by preventing discrimination against it."
"I am alarmed by the recent Copyright Royalty Board decision and the effect it will have on Internet radio -- especially small webcasters with limited revenue streams," Sen. Brownback added. "I am hopeful that with this bipartisan legislation Internet radio will continue to flourish."
Jake Ward, spokesperson for the SaveNetRadio campaign, commented on the bill, saying, "Since the CRB's ruling,
Internet radio listeners, webcasters and the artists they promote have joined together to urge Congress to prevent this vibrant industry from going silent on July 15. On behalf of Internet radio's 70 million monthly listeners, thousands of webcasters, and the incredible diversity of talented artists it supports, we commend Senators Wyden and Brownback for their understanding of Internet radio's importance and for their leadership in taking the steps needed to save it."