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| Net Radio Marked for Extinction |
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 According to an article that appeared in the July 15th issue of Newsweek ("Labels to Net: Die Now" by Steven Levy), as of October 21, 2002 government imposed "performance fees" will put independent web-casting radio stations out of business. Heavily influenced by recording industry pressure, the new royalty fee recommended to The U.S. Copyright Office back in Feb. 2002 would make it virtually impossible for small, independent Net Radio stations to exist.
The Newsweek article cites The Recording Industry Association of America (R.I.A.A.) and The National Association of Broadcasters as the lobbies responsible for the proposed fee that is, "...desireable because it will bring about market consolidation," said an R.I.A.A. -backed economist.
The fee recommendations came from a three-person Copyright Arbitration Royalty Panel (CARP) established by the U.S. Copyright Office for The Library of Congress - which is responsible for setting royalty rates for the "Digital Millennium Copyright Act (DMCA)" passed in 1998. The royalty fees are to be collected by Sound Exchange, a recording industry organization.
According to Kurt Hanson of the Radio and Internet Newsletter (RAIN), the money owed by small, independent webcasters come October 21st will be several times that of actual revenues made by their websites, effectively ending the practice of internet radio as you know it.
Unlike traditional broadcasting fees, which pay composers through performance rights organizations based on the number of "plays" of a recording (approx. 3 percent of revenues traditionally), the proposed fees on internet radio stations would charge based on the number of listeners. What's worse, the fees due to record companies for webcast of their copyrighted material this fall will be retroactive to 1998, ensuring bankruptcy for all but the most wealthy of internet music providers.
Confused yet? In a nutshell, independent bands looking for more exposure via internet radio are being screwed by the media moguls who'll never play true indie music on their lame, homogenized, corporate hyper-fluffer radio stations. For a more detailed explanation, Michiganbands.com recommends you visit Save Internet Radio.org. It's an excellent source of information on saving internet radio and what you can do, if anything at this point, to keep the web-waves from being monopolized by the fat-cats who run our public airwaves.
If you'd like to de-construct the legalese for yourself, read:
Or, read the original Newsweek piece at R.A.I.N.'s website:
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