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US webcasters will face sharp rises in royalty fees that could be "fatal" to the nascent industry, a coalition of web broadcasters has claimed.
The increases will start on 15 May and will eventually charge royalties every time an online listener hears a song.
The decision to impose the fees was made by a panel of judges who threw out requests to overturn an earlier ruling.
Public and commercial broadcasters claim it will force cuts to services used by an estimated 50 million people.
"If these rates stand... I believe we'll see a virtual shutdown all of US webcasting," wrote Kurt Hanson, CEO of AccuRadio, on the SaveInternetRadio.org blog.
"That will be bad for listeners, webcasters, musicians, and the record industry alike."
But SoundExchange, the not for profit group which will collect the fees on behalf of labels and artists, welcomed the decision.
"Our artists and labels look forward to working with the Internet Radio industry - large and small, commercial and non-commercial - so that together we can ensure it succeeds as a place where great music is available to music lovers of all genres," said John Simson, executive director of the group.
SOURCE
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Posted: 2007-04-17 14:08:38
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Yes bad news indeed. More info here (and fill in the petition!)
http://savenetradio.org/
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Posted: 2007-04-17 14:12:26
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