Independent Thoughts

Its very much possible that in next few months many internet radio may shut down if the increase in royalty rates do go through based on the recent offer by SoundExchange, the non profile company. SoundExchange, a company backed up by big music houses in USA is designated by the U.S. Copyright Office to collect and distribute digital performance royalties.

The offer by SoundExchange says that mall webcasters can continue paying the same rates they’ve paid since 1998. Small webcasters who do not sign the agreement, but continue streaming, will be responsible for paying the rates announced, the Library of Congress’ Copyright Royalty Board which said that by 2010 new rates would more than double the current royalty rate each time a song is played, and that all webcasters would have to pay an annual fee of $500.

You can also view the propsed Internet Radio Equality Act by Mr. Inslee

Small webcasters may be hit big time as they hardly do any business and generate any revenue but still be forced to pay the minimum amount per year.