Webcasters and Recording Industry
File Suits against Royalty Rate
Both sides have announced they will file legal appeals of a decision by the Librarian of Congress to impose royalty fees on Internet radio stations offering music on the Web.
The June 20 ruling by Librarian of Congress James H. Billington, who oversees the U.S. Copyright Office, set the rate at 70 cents per song for every 1,000 listeners, exactly half the rate proposed by an independent Copyright Arbitration Royalty Panel in February. The Recording Industry Association of America said that rate did not sufficiently compensate musicians. However, Webcasters, represented by the Digital Media Association, maintain that the rate is high enough to put many of them out of business, the CNet online news service reported August 7.
The appeals notices were filed August 7 with the U.S. Court of Appeals for the District of Columbia Circuit, which will now set dates for the filing of briefs. Despite the appeals, Webcasters will still be required to begin paying the royalties, which are retroactive to 1998, in September.
Posted August 19, 2002.
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