Local radio stations that stream content over the Internet may get a reprieve from a pending increase in royalty fees.

In March, the Copyright Royalty Board proposed a major increase in the royalty fees stations pay to broadcast music online. They suggested changing the fee structure so that stations pay per song as well as an annual fee retroactive to Jan. 1, 2007. The move, while affecting large radio stations and Internet-only broadcasters, was a particular blow to low-budget public radio stations.

Earlier this month, however, CRB delayed the deadline for implementation of the new fees from May 15 to July 15 — giving broadcasters more time to appeal the decision. Legislation recently introduced in Congress would overturn the CRB’s decision entirely.

Reps. Jay Inslee, D-Wash., and Don Manzullo, R-Ill., have introduced the Internet Radio Equality Act (H.R. 2060). The legislation would require commercial stations to pay a flat per-hour royalty fee, as well as an annual profit percentage, as they did previously.

This story continues below
Advertisement

The figure, 7.5 percent, is similar to what satellite radio pays. Non-commercial fees would be subject to a different, lower fee structure.

“I think that they really understood that public radio should not be treated like commercial radio, as we do this as a public service,” said Stephen Yasko, general manager of Baltimore-based WTMD (89.7 FM) radio who helped lobby for the legislation. “I’m pretty optimistic.”

D.C.-based National Public Radio spokeswoman Andi Sporkin said the legislation would especially benefit stations like D.C.’s WAMU (88.5 FM), which broadcasts news content as well as musical material such as jazz and bluegrass. Sporkin did not know whether the legislation would pass before July 5, but she said NPR plans to appeal the CRB decision, which would further delay the process.

SoundExchange, the D.C.-based royalty collection agency, said the legislation means musicians will not receive the royalties they deserve.

“The idea that this bill would help small webcasters or artists is ludicrous since less than 2 percent of all royalty payments in 2006 came from small webcasters,” SoundExchange Executive Director John Simson said in a statement.

melissa.frederick@dcexaminer.com