[Congressional Record (Bound Edition), Volume 153 (2007), Part 7]
[Extensions of Remarks]
[Pages 10598-10599]
[From the U.S. Government Publishing Office, www.gpo.gov]




                       INTERNET RADIO EQUITY ACT

                                 ______
                                 

                            HON. JAY INSLEE

                             of washington

                    in the house of representatives

                        Thursday, April 26, 2007

  Mr. INSLEE. Madam Speaker, on March 2, 2007, the Copyright Royalty 
Board (CRB), a three member panel affiliated with the Library of 
Congress, issued a decision that changed royalty expenses for 
commercial and noncommercial webcasters and will likely end Internet 
radio as we know it today. According to the decision, which is 
retroactive beginning January 1, 2006 and commences through December 
31, 2010, commercial and noncommercial webcasters would be subject to 
an increase in royalty rates from $.08 in 2006 per performance to $.19 
per performance in 2010. The new royalty rates amount to a 300 percent 
increase for the biggest webcasters and up to 1200 percent for small 
webcasters. For most web casters the royalties will exceed their gross 
revenues and bankrupt them. The CRB has refused to reconsider its 
decision so the higher royalties--including retroactive royalties back 
to January 2006--are due May 15, 2007. My fear is that these new rates 
will decimate Internet radio and 70 million Americans that listen to 
Internet radio every month will no longer have access to this music 
service.
  For these reasons, I have introduced the Internet Radio Equality Act 
which provides royalty parity for Internet radio providers. The bill 
vacates the CRB's March 2nd decision and changes the royalty rate-
setting standard that applies to commercial Internet radio royalty 
arbitrations so that it is the same standard that

[[Page 10599]]

applies to satellite radio, cable radio, jukeboxes, and record 
companies (when they are licensees of songwriters). The bill also sets 
a transition rate through 2010 that is the same royalty rate that 
satellite radio services pay (7.5 percent of revenue). Finally, the 
bill expands the Copyright Act's Section 118 musical work license for 
noncommercial broadcasters like National Public Radio to enable those 
broadcasters to also perform sound recordings over Internet radio at 
royalty rates designed for noncommercial entities.
  I believe strongly that it is the responsibility of Congress to 
promote media diversity in all areas including web-based broadcasting 
and to ensure affordable consumer access to Internet media.

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