Feeds

Court denies stay of internet radio execution

Three days and counting...

High performance access to file storage

The internet radio death watch continues. Late yesterday, a federal appeals court denied an emergency stay petition from webcasters, refusing to delay the arrival of massive royalty hikes that threaten to bring down online radio as we know it. The new royalty rates - which could mean a 300 per cent payment increase for large stations, 1200 per cent for smaller broadcasters - are due to kick in this Sunday.

The stay was rejected with a single sentence from the U.S. Court of Appeals for the District of Columbia Circuit. "Petitioners have not satisfied the stringent standards required for a stay pending court review," the order read.

Jake Ward, a spokesperson for SaveNetRadio, a coalition of Internet radio broadcasters that's been lobbying Congress for a repeal of the rate hikes, told The Register he was "surprised" and "very disappointed" by the court order, but said webcasters will continue to fight the good fight. "We're not giving up," he said. "There's plenty of work to be done, and we'll be doing it."

The Internet Radio Equality Act - which seeks to introduce a more-forgiving royalty model - now has 128 sponsors in the House of Representatives, and though broadcasters hope to get this legislation passed before Sunday, Ward says the push won't end if the big day comes and goes without a new law in place. "The Court’s failure to act has put the ball squarely in the hands of Congress, and Members of Congress work for the people, many of whom enjoy net radio everyday.”

A similar response came from the Digital Media Association, the national trade organization whose members include big-name broadcasters Yahoo! and Live365. "DiMA members and all webcasters are disappointed by the Court’s decision, and are now forced to make very difficult decisions about what music, if any, they are able to offer," said DiMA executive director Jonathan Potter. "We’re hopeful that Congress will take steps to ensure that internet radio is not silenced."

In March, the U.S. Copyright Royalty Board set down new royalty rates that would require webcasters to pay 8 hundredths of a cent each time they broadcast a song to an individual listener. That's $0.0008 per song per listener - and it's retroactive to the beginning of 2006. According to Ward, this amounts to a 300 per cent rake hike for the even the largest internet radio stations, 1,200 per cent for the smallest webcasters. Most, he says, could not afford to stay in business. By 2010, rates are scheduled to hit $0.0019 per song per listener.

When SoundExchange, the nonprofit organization charged with collecting online radio royalties, comes knocking with the bill this Sunday, some broadcasts may not answer the door. "We've heard, from our coalition members, almost every conceivable position," Ward said. "Some may pay in full until they can't pay anymore - and then go bankrupt. Other may continue paying 2005 rates. And some may refuse to pay at all."®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Nokia offers 'voluntary retirement' to 6,000+ Indian employees
India's 'predictability and stability' cited as mobe-maker's tax payment deadline nears
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
Adrian Mole author Sue Townsend dies at 68
RIP Blighty's best-selling author of the 1980s
Analysts: Bright future for smartphones, tablets, wearables
There's plenty of good money to be made if you stay out of the PC market
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.