keep those cards, letters and phone calls coming to your congressmen and
senators.  Here is the latest info hot off the presses today:


http://www.news.com/ 

Lawmakers propose reversal of Net radio fee increases

By Anne Broache
http://news.com.com/Lawmakers++propose+reversal+of+Net+radio+fee+increases/2100-1028_3-6179627.html


Story last modified Thu Apr 26 15:52:28 PDT 2007 


A bill introduced in Congress Thursday aims to overturn a controversial
royalty fee increase that Internet radio advocates say threatens to
cripple their services. 
The "Internet Radio Equality Act," introduced by Reps. Jay Inslee
(D-Wash.) and Don Manzullo (R-Ill.), would invalidate a March 2
decision by the U.S. Copyright Royalty Board that calls for raising
royalty rates paid by Net radio operators. 

"You can't put an economic chokehold on this emerging force of
democracy," Inslee said in a statement e-mailed by a spokeswoman.
"There has to be a business model that allows creative Webcasters to
thrive and the existing rule removes all the oxygen from this space." 

The bill's introduction comes less than two weeks after the CRB
declined to reconsider most of its decision. Small Webcasters, National
Public Radio, Clear Channel Communications and others had filed
petitions for a rehearing. Some have indicated they are considering
filing an appeal of the rules in court. 

If it were to stand, the CRB's existing ruling (PDF) would result in
fee increases on Internet radio operators ranging from 300 to 1,200
percent between 2006 and 2012, according to a group called
SaveNetRadio, which has been lobbying Congress for relief. 

Specifically, the rules call for rate increases of .08 cents per song
per listener retroactive to 2006. They would also 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 royalty payment
under the ruling. 

The congressmen said they had already received more than 1,000 e-mails
and letters opposing the decision. 

In addition to repealing that regime, the new House bill offers a
compromise: It would set the rate at 7.5 percent of the Webcaster's
revenue "directly related to" its transmission of sound recordings, or
33 cents per hour of sound recordings transmitted to a single listener.
It would be up to the Webcaster to decide which model to use. That rate
would also apply to satellite and cable radio operators, Inslee's
office said in a statement. 

The proposal drew applause from SaveNetRadio, whose members include
Internet radio listeners, Webcasters and artists. 

"This bill is a critical step to preserve this vibrant and growing
medium, and to develop a truly level playing field where Webcasters can
compete with satellite radio," said organization spokesman Jake Ward. 

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The bill also calls for public radio broadcasters to submit a report to
Congress on how to determine rates for their class of services. Andi
Sporkin, NPR's vice president of communications, called that idea a
fair solution that is consistent with more than 30 years of copyright
law, which "has recognized that public radio has a very different
mission from commercial media and cannot pay commercial-level royalty
rates." 

Representatives for SoundExchange, the nonprofit entity that collects
the fees and lobbied for the royalty rate changes, said they were still
reviewing the bill and had no comment on Thursday. 

The organization in the past has defended the CRB's decision as an
appropriate way of ensuring artists are adequately compensated when
their work is broadcast over the Internet. 



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