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Monday, August 06, 2007

Webcast Royalty Bill, Negotiations Hit Impasse



By Eliot Van Buskirk
A federal bill that would reset music royalties at a more affordable rate for thousands of internet radio stations is losing steam in the House of Representatives, raising new fears for the future of webcasting.

First-time webcasting fees proposed by recording industry royalty-administration group SoundExchange took effect last month, setting off a wave of protests and last-minute negotiations aimed at reducing the hit for smaller webcasters and capping rates for sites that support hundreds of customized stations.

Negotiations are ongoing, but chances of broad legislative relief in the form of the Internet Radio Equality Act, or IREA, are fading fast, according to several people familiar with the effort. Rather, Congress appears resolved to let SoundExchange and the various strata of webcasters negotiate individual settlements.

"We met with members of the House and Senate judiciary committees this week, and while they all were supportive of small webcasters, time after time we heard the IREA was not going to pass," said Rusty Hodge, founder of webcaster SomaFM.
Read more from:
WIRED http://www.wired.com/entertainment/music/news/2007/08/IREA_faces_music