• CNNMoney.com, Thursday, July 19, 2007 11:15 AM

Is Web radio dead yet? "Black Sunday" (July 15) has come and gone, royalty fees have been marked up by more than 300% for some Web radio stations, and some smaller broadcasters have already shut down, but (gasp!) there is light at the end of the tunnel: SoundExchange, the government-appointed organization that collects royalty fees on behalf of the recording industry, has agreed to continue negotiations on new rates in the hope that an agreement can be reached.

The move should come as little surprise, because as the Recording Industry Association of America knows, everybody loses if you charge astronomically high rates and your customers are forced to shut down. One solution being bandied about is to target only the largest broadcasters with higher rates, while allowing the mom-and-pop shops to continue operating under the previous royalty structure.

As one entertainment and intellectual property lawyer says, negotiations are the most likely way to end the impasse, because legislation and litigation are ineffective solutions. Just goes to show how archaic royalty and copyright laws really are. Fortunately, someone on the opposite side of the fence understands that. Until Congress realizes these laws are in need of a complete overhaul, inter-negotiations are the only path to progress.

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