After Webcasters and recording-industry officials reached a deal on Internet-radio royalty fees, the House of Representatives passed a measure October 7 allowing smaller Webcasters to pay a percentage of their revenues or expenses to musicians and record companies rather than the flat per-song fees imposed in June by Librarian of Congress James Billington.
Webcasters that make less than $250,000 per year would pay about 10% of revenue or 7% of expenses, whichever is greater, the CNet online news service reported October 7. Those making between $250,000 and $500,000 a year would pay 12% of revenue or 7% of expenses. Retroactive payments dating back to 1998 would be 8% of revenue or 5% of expenses. The rates will be valid through 2004. Larger companies would pay the original fees set by the Librarian of Congress.
The Webcasters and the music industry will now take their plan to the Senate. Reuters reported October 7 that Senate Judiciary Committee Chair Patrick J. Leahy (D-Vt.) has said he will support the measure.
Posted October 14, 2002.