With the US Copyright Royalty Board resolute that the previously reported hike in royalties that American webcasters have to pay is not negotiable, said web radio firms probably need to look for a political rather than legal solution to their royalty problems, and that solution may now be on the table in the form of the Internet Radio Equality Bill, which has been proposed by Representatives Jay Inslee and Donald Manzullo.
As previously reported, the CRB recently increased the amount of royalties web radio firms have to pay to play music on their services, so much so that many in the web radio sector say smaller niche services may go out of business when the new rates come into being next month. With the CRB refusing to hear an appeal, the legislative proposals could be the webcasters best hope. The bill proposes linking web radio royalties to the royalty system that covers satellite radio and jukeboxes owners - which is based on a percentage of revenues system, rather than a per play system, something which would be much more friendly to webcasters - especially the smaller ones.
The proposals have been welcomed by SaveNetRadio, a consortium of web radio types. They told reporters: "This bill is a critical step to preserve this vibrant and growing medium, and to develop a truly level playing field where webcasters can compete with satellite radio. The Internet Radio Equality Act is the last best hope webcasters, artists, and listeners have to keep the music playing".
Of course the political process isn't especially known for its speed, so even if this bill was successful, it might not be in place in time to help the smaller web radio stations that will face new higher royalty bills next month. Jonathan Potter of the US Digital Media Association, which represents the likes of AOL, RealNetworks, and Yahoo!, said this week: "This bill may be internet radio's last best hope. We are hopeful that Congress will move forward quickly to enact this groundbreaking legislation - and offer a lifeline to the industry".