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ROYALTY RATE PROPOSAL FOR NET RADIO REJECTED

Final Determination to Come in June

By Published on .

CHICAGO (AdAge.com) -- The Librarian of Congress today rejected a royalty rate proposal issued by the Copyright Arbitration Royalty Panel that called for Internet radio providers to pay for music broadcasted over the Web.

The panel in February had proposed that terrestrial radio stations streaming over the Web pay 0.07 cents per song played for each consumer listening, while Internet-only broadcasters pay 0.14 cents per song for each listener.

James H. Billington,

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the Librarian of Congress, rejected that rate proposal, based on a recommendation from the Register of Copyrights, and will issue a final determination about royalty rates and other terms on June 20.

Broadcasters in February had objected to the proposal, saying the royalty rates would make it impossible for the Internet radio industry to stay in business as a free service to consumers.

The National Association of Broadcasters today said, "We are hopeful the Librarian's final determination will result in rates and terms that reflect market reality."

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