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Inslee internet radio bill passes U.S. House of Representatives
Webcaster Settlement Act expected to get vote on Monday in US Senate

September 28, 2008

Last night, the U.S. House of Representatives unanimously passed H.R. 7084, the Webcaster Settlement Act of 2008, authored by U.S. Rep. Jay Inslee (D-Wash.). The bipartisan legislation, introduced by Inslee and co-sponsored by Reps. Howard Berman (D-Calif.), Donald Manzullo (R-Ill.), John Conyers (D-Mich.) and Lamar Smith (R-Texas), creates a way to ensure the long-term viability of internet radio by ending a long-running dispute over royalty rates.   

“This is a truly historic moment for internet radio and its listeners,” said Inslee, a member of the powerful Energy and Commerce Committee.  “There may now be a light at the end of the tunnel in the fight over internet radio royalties.”

Inslee’s bill permits a negotiated settlement between internet webcasters and Sound Exchange, who collects royalties for musical performers, to replace the exorbitantly high royalty rates set by the Copyright Royalty Board (CRB) in March 2007.  Inslee, a longtime advocate for internet radio, introduced the bill earlier last week and worked through the weekend to ensure its passage.   In the face of unexpected last-minute opposition from the National Association of Broadcasters (NAB), who represent traditional AM/FM radio broadcasters, Inslee, Berman and allies brokered a fair compromise which addressed the concerns of NAB members while still facilitating an end to the royalty dispute.   The Inslee bill came to the floor of the House last night and passed by unanimous voice vote. 

On Monday, the “Webcasters Settlement of 2008” arrives in the Senate for a vote.  If it passes the Senate without incident, it would move to President George W. Bush for his final signature and then become law.

About internet radio royalty fees:
  In March 2007, the Copyright Royalty Board (CRB) set proposed royalty rates for internet radio at levels that would destroy internet radio broadcasters.  Some small webcasters estimated that they would have to pay up to 125% of their revenues in royalty fees if the new rates went into effect.  Inslee has been working since then to reverse or revise the ruling to allow the diverse voices of internet broadcasters around the United States to be heard.  “The Internet Radio Equality Act,” a previous bill from Inslee on the subject, would have reversed the CRB decision.  It garnered 150 co-sponsors in a Congressional groundswell of support for new media technologies.

Further resources:
• See Inslee’s speech in the House of Representatives in support of his bill, the “Webcaster Settlement Act of 2008,” at this link:  http://www.youtube.com/watch?v=J4NDU1ps-3c