Skip to main content

U.S. Webcasters Facing Harsh Royalty Rules

A panel of judges on the U.S.’s Copyright Royalty Board have upheld (PDF) a previous ruling which substantially increases the amount of royalties Internet broadcasters and Webcasters would have pay for the use of music in online radio and other streaming media. Under the new royalty structure many Internet broadcasters and terrestrial stations offering online feeds of their programming may be forced to shut down operations.

National Public Radio and several independent Webcasters had appealed the Copyright Royalty Boards’ decision to raise royalty rates last March, arguing the new rules amounted to an "abuse of discretion" and would see royalty rates for online broadcasters rise so significantly that most, if not all, online broadcasters would be put out of business. The Copyright Royalty Board rejected the appeal, noting that the parties did not present any new evidence or error in previous proceedings which would warrant overturning the previous ruling.

Recommended Videos

Appeals processes are typically limited to consideration of new evidence which was not introduced or available during initial procedures, or to address errors in process which could have materially impacted a cases’s outcome. In upholding its original decision, the Copyright Royalty Board did change how royalties for online broadcasters would be determined through 2008; instead of a per-song fee, broadcasters will be able to pay a royalty based on the average listening hours.

The new royalty rates are schedule to go into effect May 15, 2007, unless the U.S. Court of Appeals for the District of Columbia Circuit agrees to hear a further appeal.

Under the existing royalty arrangement, online broadcasters had to pay an annual fee, plus twelve percent of their profits to the SoundExchange, a music industry organization set up to collect royalties from broadcasters. The new terms (PDF) change payments to a flat-fee of $0.0011 for each song played on a per-listener basis, applies the new fees retroactively to the start of 2006, and introduces a schedule which more than doubles the per-song rate by 2010.

According to most Internet broadcasters, the new royalty structures are "irrationally high," totalling more than four times what satellite and broadcast radio pay, and effectively tripling royalty payments to be paid by many Internet broadcasters. Pandora has warned its users the new fees will shut down "every Internet radio site." A campaign for "save Internet radio" peition campaign has been launched in hopes of influencing members of Congress to forestall the new royalty regime.

Geoff Duncan
Former Digital Trends Contributor
Geoff Duncan writes, programs, edits, plays music, and delights in making software misbehave. He's probably the only member…
Early Black Friday chest freezer deals: up to 40% off today
The Insignia 7-cubic feet chest freezer placed in a garage.

Update 10/29/24: This starts our Black Friday coverage of chest freezers, and we like what we see so far. The following deals are from a variety of good brands, show a wide range of prices, and most importantly come in various sizes, so you can pick what is right for your home.

While Black Friday officially starts on November 29, retailers are getting started early this year. That means great early Black Friday deals, including on things like chest freezers. Here, we search high and low for the best deals on chest freezers to hit the market. That means we're looking at sources like Walmart's, Amazon's, and Best Buy's early Black Friday deals among others to get you the best deals possible. Whether you're wanting to store ice cream, meat, or a party's worth of frozen pizza, these are the best chest freezers for you.
Hisense 5 cu. ft. Garage Ready Chest Freezer — $165 $189 13% off

Read more
Best cordless drill early Black Friday deals: DeWalt and more
A DeWalt drill being used.

Update 10/28/24: This marks the beginning of our drill coverage for 2024's Black Friday shopping season, and all of the major brands have at least one great deal. While we're excited for what is to come, this is a fantastic start and there's really no reason to not go ahead and get prepped by buying something now.
If you're buying anything this Black Friday, there's a big chance you might want a drill/driver to go with it. A drill/driver is one part drill, one part (screw)driver and it can help out in many situations. For example, say you take part in one of these early Black Friday TV deals, you very well might want to wall mount it. Then, say you grab up an easy coffee maker from Keurig's early Black Friday deals. An extra side table in your study would sure go nice with that and a drill/driver could very well make the table's construction much easier.
Really, with so so many of your early Black Friday purchases, there might be a chance to pick up a cordless drill or driver and get to work. As such, we've compiled a list of the best cordless drill deals throughout Black Friday deals that are available now, so you can get a head start on prepping for the savings that are to come.

Skil Pwr Core 12 Drill/Driver — $50 $59 15% off

Read more
Best Roomba deals: Top robot vacuums from as little as $170
iRobot Roomba 692 Robot Vacuum.

If you come home and don't really look forward to doing the day-to-day dusting and vacuuming that's required to keep everything clean, then robot vacuums are a great solution. Probably one of the best-known brands is Roomba, and if you're looking to pick up a new one, then Roomba has a lot of great options you can pick from.. Whether you're looking for a budget-friendly option or something a little bit more high-end that comes with a self-emptying station, we've gone out and collected some of our favorite Roomba deals below.

That said, if you don't necessarily want a Roomba, you can check out these general robot vacuum deals, and for the more substantial messes, there are always these vacuum deals and cordless vacuum deals too.
iRobot Roomba i1 -- $170 $220 22% off

Read more