Bill Seeks to Revise Online Streaming Royalties

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Washington - Sep 21, 2012 - Reps. Jason Chaffetz (R-UT) and Rep. Jared Polis (D-CO) and Sen. Ron Wyden (D-OR)proposed a bill to reform music streaming rates called the Internet Radio Fairness Act of 2012. The purpose is to adopt fair standards and procedures by which determinations of Copyright Royalty Judges are made with respect to webcasting.

The bill starts by revising how Copyright Royalty Board Judges are appointed, replacing the Librarian of Congress with the President. The bill also established specific experience requirements for the judges.

Important to those who would royalties, the bill goes on to stipulate the methods of determining royalty rates for streaming music online, noting that fees should follow competitive market circumstances as agreed to by most copyright users. Fees would also take into account the promotional value and benefit of streaming the music.

If passed, the bill would reduce the royalty burden on Internet radio stations and satellite radio to be more inline with what terrestrial radio stations pay.

The bill has received support from the NAB, CEA, several broadcast owners, Pandora and others.

H.R. 6480

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