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Web Radio Loses Copyright Appeal

Web radio broadcasters were dealt a harsh blow on Monday as a federal copyright panel upheld its decision to raise the royalty fees Web radio companies have to pay record labels. The decision comes in the wake of an appeal filed by National Public Radio and signed by hundreds of small commercial Webcasters, which complain that significantly raised fees would put them out of business. The three judges from the U.S. Copyright Board said the consortium failed to make a "sufficient showing of new evidence or clear error or manifest injustice that would warrant rehearing."

The new rules say Webcasters must pay $.08 cents per song per listener retroactive to 2006, according to CNET. Rates would climb to $.19 cents per song by 2010, equivalent to a 30% increase per year. The stations are required to hand over a minimum $500 royalty payment as per the new ruling, which goes into effect May 15.

Web radio argues that they already pay the highest royalty rates in proportion to their revenue and that further changes would condemn their services. The new ruling prompted artists, labels and Web casters to form the SaveNetRadio coalition, urging Congress to look at the matter, which it will do after the Royalty Board publishes its decision in the Federal Register. Then, the parties have 30 days to file an appeal with federal court in Washington.

Read the whole story at CNET News.com »

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