After two years of negotiations, online radio stations reached an agreement Tuesday involving copyright royalty rates, according to AP. In 2007, the federal Copyright Royalty Board raised the rates that Internet stations must paid artists and labels. The new deal lowered rates.
"Under the agreement, large commercial webcasters will pay copyright owners up to 25 percent of their revenue or a "per-performance" rate...smaller webcasters will pay either a percent of revenue or a percent of expenses."
Pandora -- one of the most popular sites with 30 million users-- seemed satisfied with the deal. Free accounts will now be limited to 40 hours per month. Congress has already passed legislation making the deal legally binding since Internet radio companies operate under a government license. AM/FM broadcasters are exempt from copyright royalty rates unless they stream songs online.
Leave a comment