Save Internet Radio Update (May 4, 2007)

SaveNetRadio.org: The future of Internet radio is in immediate danger. Royalty rates for webcasters have been drastically increased by a recent ruling and are due to go into effect on July 15 (retroactive to Jan 1, 2006!). If the increased rates remain unchanged, the majority of webcasters will go bankrupt and silent on this date. Internet radio needs your help! H.R. 2060, The Internet Radio Equality Act was introduced by Representatives Jay Inslee (D-WA) and Donald Manzullo (R-IL ) to save the Internet radio industry. Visit the website for information on how to contact your House of Representative.

NOTE: The Day of Silence Postponed until a later date TBA!

[On May 2nd,] the Copyright Royalty Board (CRB) published its “Final Determination of Rates and Terms" of its March 2nd ruling in the Federal Register, which notes that the first payments are due 45 days after the end of the month in which the “final” determination was published, in this case may. According to the CRB’s statutory interpretation, the first payments for Internet radio webcasters are due July 15, 2007 instead of May 15, 2007. This is welcome news for webcasters, the artists they support, and the millions of listeners who enjoy Internet radio. SaveNetRadio will spend the next 45 days educating Members of Congress and their staffs about the incredible diversity of programming Internet radio offers us all. We will set the ticking clock back 60 days and continue our fight to free Internet radio from these devastating fee increases.

We feel strongly that Congress could not possibly have intended a structure whereby Internet radio services pay 60% to 300% of their revenue in recording royalties, while satellite radio pays 5-7% and broadcasters pay zero, and we urge them to support H.R. 2060, The Internet Radio Equality Act. This legislation achieves that necessary balance by setting Internet radio rates equal to that of satellite radio, while also providing the same important and preferential rules for public and noncommercial Internet radio.

Kurt Hanson: In light of recent events, webcasters should note that the Day of Silence event has been put on hold. After getting advice from numerous webcasters and other observers, we have decided that, given the surprise two-month reprieve in the CRB's final determination yesterday (see RAIN article here), May 8th is no longer the optimal date for our planned "Day of Silence" event. We only get one chance to pull this off, so the general consensus is that we should wait for just the right moment — i.e., when developments in Congress are at the optimal point. Watch for continued analysis and news regarding this event in upcoming issues of RAIN.

Also in today's issue: After a little bit of much-needed recovery time, today's issue of RAIN features our full in-depth recap of the Internet radio industry's "Hill walk", which took place Tuesday in Washington D.C. Dozens of webcasters, artists and independent label execs were on hand to deliver our urgent message directly to the powers-that-be. The experience was at once overwhelming and inspirational, with so many passionate people dedicating their time and effort to help keep our industry alive. A jury found that Yahoo's Launchcast "personalization" features do not constitute "interactivity," and thus \the service is not infringing on Sony BMG copyrights by operating under the compulsory webcast license. Read full details in today's issue of RAIN, available now at http://www.kurthanson.com.