Webcast-Royalty Bill Pulled
as Compromise Nears
A bill that would delay the levying of Internet-radio royalty fees for six months was pulled from the floor of the House of Representatives October 1 after Webcasters and recording-industry officials announced they were nearing a compromise on the issue.
The fees, imposed in June by Librarian of Congress James H. Billington, were to have taken effect this month. The legislation, introduced by Rep. James Sensenbrenner (R-Wis.), would have postponed their implementation until July 2003 while Billington’s ruling was appealed in federal court.
In a prepared statement reported in the October 1 Washington Post, Sensenbrenner said the parties had assured him they would reach an agreement “that will be fair to Webcasters, record companies, and recording artists, as well as provide the economic certainty and stability necessary for Webcasters large and small to succeed.”
The Recording Industry Association of America had complained that the rate, set at 70 cents per song for every 1,000 listeners, was too low; Webcasters, represented by the Digital Media Association, counter that the rate is high enough to put many of them out of business.
Posted October 7, 2002.
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