Thursday, October 10, 2002

Better News for Net Radio Stations
…the passing of the bill by the House holds out promise that allegedly potentially ruinous fees for many Webcasters, especially small ones, could be restructured. The new bill would allow Webcasters who have annual revenues under $250,000 to pay either ten percent of their revenues or seven percent of their expenses—whichever is greater—in royalties, rather than paying per-song fees. Mid-sized Webcasters would also pay fees dependent on their revenues or expenses, rather than per-song fees, but large Webcasters such as AOL would not receive any exemptions. Rates for retroactive fees for small- and mid-sized Webcasters would also be based on revenues, not on individual songs played.

The Librarian of Congress had initially ordered unilateral per-song fees, and that retroactive fees going back to 1998 be paid. Representative F. James Sensenbrenner (R–WI), introduced the Relief for Small Business Webcasters bill in response to that requirement.
http://www.pcmag.com/article2/0,4149,605540,00.asp

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