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Thread started 09/24/12 11:59am

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Proposed Bill Could Change Royalty Rates for Internet Radio

New York Times

Willing buyer, willing seller. Those four words would seem innocuous, but in the world of Internet radio nothing is more contentious.

They are part of a federal judicial standard that is the basis of how royalty rates are set for Internet radio services like Pandora Media. For years, however, online services have complained that the standard is unfair, and results in burdensome rates that are much higher than those paid by satellite radio. The battle flared up again on Friday with a new Congressional bill, the Internet Radio Fairness Act. Introduced in the House by Jason Chaffetz, Republican of Utah, and Jared Polis, Democrat of Colorado, the bill would move so-called noninteractive online radio services like Pandora and Clear Channel Communications’ iHeartRadio app from the “willing buyer, willing seller” standard to the one used to determine rates for Sirius XM Radio. (Read more in the link above).


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