[Congressional Record Volume 155, Number 76 (Monday, May 18, 2009)]
[Extensions of Remarks]
[Page E1190]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    WEBCASTER SETTLEMENT ACT OF 2009

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                            HON. JAY INSLEE

                             of washington

                    in the house of representatives

                          Monday, May 18, 2009

  Mr. INSLEE. Madam Speaker, I rise today to thank Chairman Conyers and 
my colleagues on the Judiciary Committee for reporting the Webcaster 
Settlement Act of 2009, a bill I introduced to clear the path for 
private negotiations to determine the royalty rates for the use of 
music over Internet radio.
  The Copyright Royalty Board (CRB) is a government body tasked with 
determining royalty rates for the use of music over Internet radio. In 
2004, the CRB was tasked with determining a rate structure at the 
direction of Congress, and released its decision in March of 2007. The 
rate structure determined by the CRB substantially increased royalty 
fees that webcasters would be forced to pay.
  Since the CRB is authorized to set and establish a royalty rate 
structure, stakeholders need Congressional authority to forge an 
agreement that the government would adopt. H.R. 2344 provides that 
critical authority, and allows private groups 30 days from enactment to 
work out a settlement amongst themselves to replace the rate structure 
established by the government.
  Webcasters and copyright holders, including those in Washington 
State, like Washington's 101, WebRadioPugetSound, WildMixRadio
Network.com, and Hollow Earth Radio need this legislation so they have 
the freedom to negotiate and craft a fair royalty rate structure for 
all impacted parties. Currently, Internet radio pays 47% of its annual 
revenue in royalty fees, a rate that will eventually crush the 
industry.
  An estimated 42 million people tune to Internet radio on a weekly 
basis. Internet radio offers consumers not only entertainment value, 
but it serves niche markets and allows access to independent labels and 
artists, diversifying programming. Webcasters in Washington State allow 
small, local, Northwest bands an opportunity to have their music heard 
across the country. This bill will allow small webcasters serving those 
markets to continue to compete and be an outlet for minority voices.
  I urge my colleagues to consider this important bill, and to help 
keep the music playing online.

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