Senate hears the Internet radio blues, takes action
Senate hears the Internet radio blues, takes action
By Nate Anderson | Published: May 10, 2007 - 03:28PM CT
"Come and save me tonight," pleaded Steven Tyler in an Aerosmith tune so sappy it could have been tapped for maple syrup, but the words could well be the rallying cry for webcasters across the country. Coalitions like SaveNetRadio.org have been petitioning Congress for relief after the Copyright Royalty Board denied an appeal to reconsider its decision earlier this year on Internet radio fees. Today, two senators rode to their rescue.
Senators Ron Wyden (D-OR) and Sam Brownback (R-KS) have just introduced the Internet Radio Equality Act of 2007. "July 15, when collection begins on the new royalty fees, literally will be the day the music died," said the two senators in a joint announcement. If passed, the bill would overturn the decision of the Copyright Royalty Board and replace it with a rate mandated by Congress—7.5 percent of total revenues.
This is the rate currently paid by satellite broadcasters like XM and Sirius, but the CRB's decision meant that small webcasters could actually owe more in fees than they earn in revenue, and some of the fees would be retroactive to 2006.
"Our bill is about standing up for folks ranging from a small webcaster in a basement in Corvallis to an innovative startup in Beaverton to a new band trying to be heard in Portland to a huge music fan in Coos Bay," said Wyden, a statement which raises the obvious question: who named all these towns in Oregon, anyway?
The new bill is a companion to one introduced two weeks ago in the House. In addition to setting the royalty rate as a percentage of revenue, the Senate bill would eliminate the $500 per channel minimum fee and set up a special rules for non-commercial broadcasters like NPR, a vocal critic of the CRB ruling.
Rep. Donald Mazulla (R-IL), a co-sponsor of the House bill, praised the new Senate bill and said that he has received plenty of positive feedback on the legislation. "Since we introduced our legislation in the House two weeks ago," he said, "I have been inundated with messages from Internet radio listeners throughout the country thanking me for protecting this wonderful medium. This issue has ignited a flurry of passion from music lovers throughout our country, and I again thank Senators Wyden and Brownback for their efforts to help keep the music playing on the Internet."
