Webcasting Royalty Rates Rejected

In a terse statement on Tuesday, federal regulators flatly rejected a royalty plan proposed by the Copyright Arbitration Royalty Panel for radio webcasters to compensate musicians and labels.

The proposed rates – originally suggested at 0.07 cents per performance for terrestrial broadcasters, and 0.14 cents per performance for Internet-only webcasters – have drawn fire since being announced in February. The recording industry, including the RIAA, had hoped for higher rates, and webcasters, many of whom are smaller radio stations, claimed the rates were too high to stay on the air.

Webcasters have been building grassroots support, lobbying Congress extensively the past few weeks and rallying support from listeners – even staging a "day of silence" on May 1, when many stopped the music in protest of the CARP-proposed rates.

The announcement, by U.S. Librarian of Congress, James H. Billington, stated, "The Register of Copyrights recommends, and the Librarian agrees, that the CARP's determination must be rejected."

A final determination will be issued June 20.