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 News.com, which could cost the three largest internet radio operators more than $1 billion during the first year after the ruling takes effect.