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Posted on Fri, Sep. 27, 2002 story:PUB_DESC
Sensenbrenner suggests giving Internet broadcasters an extra six months before new fees

Small Internet radio stations should get an extra six months before being forced to pay royalties to the musicians whose songs they are playing, the chairman of the House Judiciary Committee says.

Rep. James Sensenbrenner, R-Wis., introduced legislation late Thursday that would delay until April 20 fees set by the U.S. Copyright Office on webcasters this summer.

The copyright office decided in June that webcasters have to pay 70 cents per song heard by 1,000 listeners starting October 20.

While the recording industry wanted more, many webcasters say that the rate is too high and will put them out of business.

Traditional radio broadcasters are exempt from paying the new royalties, which would go to compensate artists and music labels for using their songs. Over-the-air radio stations use a rate based on a percentage of revenue to pay performers and record labels.

Internet radio -- either simulcasts of traditional over-the-air radio or Internet-only stations streamed through the Internet to computers -- is becoming more popular at offices and homes as people get high-speed computer connections. It is expected to move more into the mainstream as wireless devices proliferate, allowing listeners to tune in while walking or driving.

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