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Bill may give Webcasters reprieve from royalty rates

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Webcasters could potentially get a break from what they claim are overly burdensome copyright fees if a new bill introduced into Congress late Thursday is approved.

The bill, introduced by Rep. F. James Sensenbrenner (R-Wis.) and chairman of the House Judiciary Committee, aims to give Webcasters a six month reprieve from online royalty rates set by Librarian of Congress last June.

The rates have been an ongoing source of contention between radio Webcasters and the powerful labels that own music copyrights. While the labels have sought higher royalty rates for content streamed over the Web, the online radio stations argue that the government-mandated fees are exorbitantly high and threaten to push most Webcasters off the air.

Dozens of radio webcasters have banded together to appeal the rates set by the Librarian of Congress, which are due to take effect on Oct. 20. Sensenbrenner's bill seeks to give the Webcasters a temporary reprieve from the fees beginning Oct. 20, presumably to allow the appeals case to wrap up before the rates take effect.

The IDG News Service is a Network World affiliate.

RELATED LINKS

Library of Congress rejects Webcaster royalty rates
In what is being seen by Webcasters as a ray of hope, the U.S. Librarian of Congress Tuesday rejected proposed royalty rates set forth by a government panel.

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