Federal court of appeals rejects webcasters’ motion to delay the onset of internet radio royalty rates passed by the Copyright Royalty Board early this year.
The new fees are set to kick in on Sunday as scheduled, as the webcasters’ party failed to “satisfy the stringent standards required for a stay pending court review.”
The Digital Media Assocation, headed by executive director Jonathan Potter, is hopeful that webcasters could still make amends with the music industry and the royalty board. In the meantime, Internet radio stations will be “forced to make very difficult decisions about what music, if any, they are able to offer. The result will certainly be fewer outlets for independent music, less diversity on the Internet airwaves, and far fewer listening choices for consumers.”
This agreement made by the Copyright Royalty Board requires internet radio stations to pay .08 cent per song played online, retroactive to 2006, which rises up to .19 cent by 2010. Also, stations ahave to pay a minimum of $500 royalty payment per channel. It was because of this that webcasters around the world staged a day of silence last July 26 as a plea for reconsideration.