• The Associated Press, Wednesday, February 18, 2009 12:15 PM

SoundExchange, a government-operated entity that collects royalties for musicians and recording companies, on Tuesday agreed to a 16% reduction in 2009 and 2010 for fees collected from radio stations that also play music online. The agreement between SoundExchange and the National Association of Broadcasters is a huge win for the NAB's members, who worried that the hefty rates set by the federal Copyright Royalty Board two years ago would essentially force them to shut down.

The NAB's members include radio giants CBS Corp. and Clear Channel Communications. Stations that are not NAB members--like the popular online music service Pandora--also have the option of joining the agreement. Under the new deal, stations will now pay $1.50 for every song heard by 1,000 listeners in 2009, rising to $2.50 per 1,000 listeners in 2015.

SoundExchange Executive Director John Simson told The Associated Press that the agreement "reinforces the value of our recordings for the artist and copyright owners over the course of the term." In a statement, NAB spokesman Dennis Wharton said the deal ensured that U.S. radio stations could continue to stream music over the Internet and "further strengthens the relationship between free, local radio and our 235 million weekly listeners."

Read the whole story at The Associated Press »