In nautical terms, a ‘"Mayday" situation is one in which you are in grave and imminent danger and you require immediate assistance. Yesterday, we proposed that Internet radio stations make a "Mayday!" cry regarding the impending Copyright Office decision by participating in a national "Day of Silence" on May 1st. Click the "Prev." button above to read more and contribute your feedback and see RAIN tomorrow for readers' responses.

BY PAUL MALONEY
A letter signed by 20 key members of the U.S. House of Representatives was sent yesterday to the Librarian of Congress, expressing concern that the CARP proposal for webcasters is "both contrary to the intent of the DMCA and Congress's general policy not to stifle innovation on the Internet."

The letter, drafted by Congressmen Jay Inslee of Washington (right), Chris Cannon of Utah (left), and Rick Boucher of Virginia, was sent to Librarian James H. Billington, whose final approval is necessary for the CARP-recommended royalty rate to go into effect.

The Congressmen fear that a rate much higher than rates paid to songwriters and publishers, and not based on a "percentage of revenue" formula, could "stifle the industry and force hundreds of small webcasters out of business," according to the correspondence.

The language of the letter clearly indicates that the undersigned see the interests of streaming broadcasters as congruent with those of the pure webcasting industry.

"Congress intended the statutory license process to be fair and efficient," the letter reads, "so that the webcast industry -- both Internet-only programming and terrestrial radio retransmissions -- could be free of legal uncertainty, grow quickly and pay creators increasing amounts as the industry developed."

Bill Goldsmith, owner of Internet radio station RadioParadise, told RAIN, "It is very encouraging to see that so many prominent members of Congress understand the implications for our industry of the proposed fees. If the fees go through as proposed, everyone will lose: station owners, listeners, artists, even the members of the RIAA.

"The support of so many members of Congress also makes me hopeful about a favorable outcome for the other digital-rights issues that Congress is dealing with," he added. "The RIAA, MPPA, and other organizations have been amazingly successful so far in persuading Congress to protect their profit margins -- disregarding technological progress, the public good, and artistic freedom in the process."

"Webcasters want to pay royalties to recording artists,” added David Landis, of Ultimate-80s, in a press statement released by California webcasters. “But if super-high rates cause us to shut down, there will be no music, no royalties paid, and no money going to California recording artists.”

Among the other 17 signatories are Reps. Mike Honda and Zoe Lofgren of California, who like Inslee, Cannon, and Boucher, are noted for their experience in the area of Internet and Intellectual Property issues.

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From FoxNews.com: "Internet radio has become a bastion for niche music, but if an impending government ruling on royalty fees is approved, listeners could find their favorite Webcasts silent...

"Webcasters say the proposed fees would require them to pay more than half their revenue, and could signal the end of online radio.

"'The CARP rates as they are proposed right now would make it impossible for Beethoven.com to continue operation or to even formulate any viable business model for Internet radio,' said the classical music site's director, Kevin Shively. 'They want to charge us per listener, per track played — every time one listener hears one track they want 14/100th of a cent...'

"But the Recording Industry Association of America (RIAA) said in a recent statement that it 'wants all Webcasters, large and small, to succeed' and 'the CARP rates will not put Webcasters out of business.'

"The statement also asserts that the consequences of the proposed royalties are being blown out of proportion. 'The CARP rates have become the subject of an intense misinformation and propaganda campaign (so-called "grassroots" but really ginned up by sophisticated lobbyists in D.C.),' the RIAA stated.

"Kurt Hanson, publisher of RAIN: Radio and Internet Newsletter, disagreed with the description. 'We're a bunch of small, independent Webcasters who wouldn't have a clue how to be sophisticated lobbyists,' Hanson said. 'The RIAA is trying to position themselves as the little guy — an approach that smacks of desperation...'

"Hanson said this ruling is an important one for the music industry as a whole. 'If the CARP rule is accepted, it looks like it favors the RIAA, but I think they would win the battle but lose the war,' he said. 'If 50,000 stations go off the air, the RIAA is going to look like the enemy to music fans...'"

Read this entire article on Fox News.com here.

From MSNBC.com: "It’s fast, portable, affordable — and it’s coming to Maui this summer: a palm-sized, go-anywhere wireless modem that will give Maui residents access to one of the nation’s first 3G — or 'third-generation' — broadband Internet services.

"Maui Sky Fibre LLC, a startup based at the Maui Research and Technology Park, plans to launch its 3G network and begin selling portable modems in June, said Managing Director Steve Berkoff...

"Maui will be first in the nation to deploy 3G broadband technology in the commercial market, Berkoff said. The service and accompanying wireless modem will give users Internet speeds comparable to those offered by AOL/TimeWarner’s Road Runner or through digital-subscriber lines — at near-dial-up prices, Berkoff said.

"The modem is the size of a Palm Pilot and plugs into a desktop computer, laptop, office or home network and provides an instant high-speed Internet connection, Berkoff said.

“'Our basic high-speed package for residential users will start around $30 per month,' Berkoff said...

"'Our service will blow away Road Runner and DSL. We have a tremendous amount of bandwidth. It will run all the way up to T-1 service and beyond...'

"'We are going to be offering the modem to guests at hotels when they check in,' Berkoff said. 'They’ll be able to rent it on a daily basis and use it anywhere on the island we can provide coverage, which will definitely include the resort areas and the coast, as well as Kahului, Wailuku and Upcountry. We’ll also expand to Molokai and Lanai as the system grows.'"

Read the entire article in MSNBC here, or in the Pacific Business News here.