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Internet radio loses royalty fee appeal
2007-04-16 14:31:33 Xinhua English

BEIJING, April 17 (Xinhuanet) -- A U.S. Federal copyright panel upheld a contentious decision on Monday that would increase royalty fees Webcasters must pay to record labels.

The U.S. Copyright Royalty Board saidafter reviewing filings submitted by small commercial Webcasters, National Public Radio, and others, none of them had "made a sufficient showing of new evidence or clear error or manifest injustice that would warrant rehearing."

The three-member board in its five-page orderalso declined to postpone the May 15 deadline when the new fees are scheduled to kick in.

The new rulesprescribe rate hikes of .08 cents per song per listener retroactive to 2006. The rates would climb to .19 cents per song by 2010, which amounts to a 30 percent increase per year. Each station would also have to hand over a minimum 500 U.S. dollar royalty payment under the ruling.

SoundExchange, the nonprofit organization that collects the royalty payments and lobbied for the changes, welcomed the board's action.

"Our artists and labels look forward to working with the Internet radio industry -- large and small, commercial and noncommercial -- so that together we can ensure it succeeds as a place where great music is available to music lovers of all genres," Executive Director John Simson said in a statement.

The judges in their decision issued two clarifications -- one about the way royalties would be calculated for 2006 and 2007 and another stating that the royalty rules would also apply to music streamed over mobile devices. But they left a number of other questions about the ruling unanswered.

(Agencies)

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