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Federal court denies internet radio petition

updated 02:10 pm EDT, Thu July 12, 2007

Net radio petition denied

Internet radio stations and Webcasters yesterday were declined a petition grant by a federal appeals court to delay the imposition of new royalties that are scheduled to take effect this Sunday. The fees, which will increase payment rates to the music industry by $0.08 cents per song per listener with retroactive payment required through 2006, will force Webcasters to "make very difficult decisions about what music, if any, they are able to offer," according to Digital Media Association (DiMA) executive director Jonathan Potter. "The result will certainly be fewer outlets for independent music, less diversity on the Internet airwaves, and far fewer listening choices for consumers," said Potter, who speaks for DiMA members like Yahoo!, Live365, and RealNetworks. Each internet radio station will also be ordered to pay a minimum $500 royalty payment per "channel" offered, according to, which could cost the three largest internet radio operators more than $1 billion during the first year after the ruling takes effect.

by MacNN Staff





  1. suhail

    Joined: Dec 1969



    Those damn corporations, they're always out trying to s**** people by pulling a fast one.

  1. burger

    Joined: Dec 1969



    $0.08 cents? Anyhoo, that's a lot of royalties per listener. Time to delacere bankruptcy for many stations.

    Capitolism at work!

  1. burger

    Joined: Dec 1969




  1. sailin74

    Joined: Dec 1969


    Record Industry

    When people quit the record industry en mass, perhaps they'll get the picture.

    It will be interesting to see how this goes when artists don't sign with labels, and just put their music on iTunes.

    Next thing they'll be embedding the ads directly in the music.

    $.08 Just ridiculous.

  1. hokizpokis

    Joined: Dec 1969


    not surprised

    and the winner is...

    well certainly not the artists, not the new internet radio stations, not the listeners, not the people...

    well congress now approved selfsigned-raises averaging $4400...

    so the winner is...

    PS. all gob't gets its' authority from the people, why don't we all just 'remove all the activity of gob't that interfeasr with our freedom'...

    we could start with requiring all gob't henchmen to work for free plus a fee!! Remove all taxes...

    require all corps that create products for america to have corp offices in the states and hire 100% american workers...

    of course this might sound a bit harsh, but hey this once was our country and now it looks like nothing I recognize as freedom... it resembles a union of slaves by taxation who can't afford to fill up thier cars and are heading towards the 'forth world class struggle'...

    ok this might not be the place to present this stuff but beware that almost all electronic stuff is designed here but built overseas with cheep labor...

    the last great frontier is the freedom of the internet and it too is forming into another oppressive landscape as you are the exploited and TPTB are the ones who base laws on the wills of corp lobbyer money...

    free the internet from oppression now!!

  1. ClevelandAdv

    Joined: Dec 1969



    The cost is 0.08 per listener, which means a penny for every 12.4 listeners per song played. This would double by 2010. The article does not mention what time increment the $500 per channel minimum is paid - This in an Annual payment.

    These royalties are lower than their radio counterparts. Internet Radio has been getting a free ride and now will have to pony-up.

    The effect will be more advertising on internet radio, if you don't like it - tune out and listen to your old Napster downloads.

  1. chadpengar

    Joined: Dec 1969



    What I don't get is why internet radio, so-called, has to pay a much higher rate of royalty than terrestrial radio.

  1. Loren

    Joined: Dec 1969


    the spirit

    Stations like The Spirit of Jazz with Jerry Dean might have to start selling hours to advertisers. I could deal with it, sort of the NPR model. But I couldn't live without The Spirit.

  1. mhurty

    Joined: Dec 1969



    How will this work for people who post copyrighted mp3s on their blogs and MySpace pages? Are they subject to the same royalty payments?

  1. JacquesDav

    Joined: Dec 1969



    Now it's back to listening to unlistenable Top 40, mainstream, formula-written, over-produced, safe-for-mass-consumption, totally-predictable dross that currently floods the airwaves anywhere and anytime it can, much like a pervasive virus.

    Internet radio was the only place to hear the unexpected, the undiscovered, and the non-commercial work that will never, ever get played by middle-of-the-road, profit-driven radio. It's a sad day for music...

    Actually, I wouldn't go back to listening to that, EVER. I'll just tune in to the BBC World Service or sample from the file sharing world, for FREE. Before which I'd hear new artists on internet radio (such as the incomparable SOMA FM) and buy a CD if I liked it. I'd estimate internet radio helped sell 200 CDs to this music lover. So much for that.

    This naked and crass cash grab sickens me... as do Britney, Nickelback and so many others, but that's another rant best kept for another web site.

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