Protesting Over Net Radio Royalties
Jun 26, 2007
A number of U.S. webcasters have been observing a "National Day of Silence" today to protest a planned royalty increase that is set to go into effect on July 15th. According to the SaveNetRadio coalition, which is rallying support for legislation to stop the rate hikes, the "future of Internet radio is in immediate danger" because the new rates would triple the royalty fees paid by many Internet radio broadcasters.
On the other side of the issue, Technology Daily spoke to Richard Ades of SoundExchange (the organization that collects the royalties), who called the proposed legislation "an insult" to artists because it would "not only vacate the [rate increases] but would cut rates by 75 percent."
The House Small Business Committee will hold a hearing about the rate increases on Thursday, with testimony from a number of Webcasters and recording artists. Til then, there's more on the issue over at the 463 blog, and venture capitalist Fred Wilson proposes a compromise.
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