Small Internet radio hit by new royalty rates

[stoney]

How do you feel about this industry move? Do you think that they want to attract more customers or flex their corporate muscle?

NEW YORK (Billboard) - Small webcasters are crying foul over new royalty rates they must pay for streaming recordings.

After a two-year proceeding, the Copyright Royalty Board (CRB) has set rates for commercial and noncommercial webcasts and Internet simulcasts, which some executives say will put them out of business.

"This is going to be a major problem for the little guys," says Robert Kimball, senior VP/general counsel for RealNetworks. "For small webcasters and companies that have built their models around free ad-based radio, it's going to be an absolutely massive increase in royalties owed."

More here

http://news.yahoo.com/s/nm/20070312/.../internet_dc_1

[keith]

This is such a glaring contradiction to the open standards/level-playing field of the internet that has been responsible for so much innovation.

The lack of taxes on the web (except for States in which you have a physical presence) helped spur huge innovation. Congress very specifically established a moratorium to encourage the innovation we've enjoyed.

This double rate for little guys is the opposite of most of our experiences with the internet. The recording industry has essentially convinced our representatives to tax the little guys on the internet DOUBLE. That sure won't enhance innovation - but then, that's exactly what they're afraid of.

Glad I came across your post again. Thanks.

Regards,
Keith