Brownback Calls for Senate to Act on Internet Radio Equality Act

Press Release

Brownback Calls for Senate to Act on Internet Radio Equality Act

U.S. Senator Sam Brownback today called on the Senate to act on the Internet Radio Equality Act, legislation which would adjust the Copyright Royalty Board's increase of Internet radio fees.

"Over a year ago, the Copyright Royalty Board threatened the future of Internet radio by setting unreasonable royalty rates for music broadcast over the Internet," said Brownback. "These unjustifiable fees will put most, if not all, webcasters out of business. Webcasters are not asking for special treatment; they simply ask for the same treatment Congress believes is fair for other digital platforms, like satellite radio."

Under current copyright law, Internet radio royalties should reflect the rate a willing buyer and willing seller would agree to in a private setting. In March 2007, the CRB set new royalty rates to be paid by Internet radio for the transmission of copyrighted sound recordings, resulting in a 300% to 1200% increase in royalty payments. The Internet Radio Equality Act would annul the CRB decision and set royalty rates at 7.5% of revenues, which is the same rate as satellite radio pays. The legislation also changes the rate-setting standard currently used by the CRB to determine Internet radio royalties, and substitutes it with the time-tested standard that applies to other platforms found in section 801(b) of the Copyright Act.

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