Copyright Royalty Board Doubles Fees for Web Radio

The Copyright Royalty Board (CRB) voted on March 2 to increase the royalty fees webcasters have to pay to artists and record labels for streaming music. Under the ruling, webcasters must pay each time a listener hears a song, at a rate that begins at 0.08 cent in 2006 (the ruling applies retroactively) and rises to 0.19 cent in 2010. Besides increasing the charge for each song, the ruling established a $500 minimum payment for each Web channel.

In late March, a group of broadcasters and online companies challenged the ruling. Unfortunately, on April 16, the CRB denied all motions for rehearing and declined to postpone the May 15 deadline for when the royalties will have to be collected. A group of webcasters, Web radio listeners, and artists have established the “SaveNetRadio Coalition,” which likely will seek a legislative remedy in the 110^th Congress.

First Published:
April 30, 2007