BY DANIEL MCSWAIN
The Internet Radio Equality Act (.pdf) has just been introduced (in mid-afternoon) by Representative Jay Inslee (D-WA, pictured right) and eight cosponsors, with more cosponsors on the bill expected shortly.

The bill has five major provisions:

• Nullifies the recent decision of the CRB judges
  

• Changes the royalty rate-setting standard that applies to Internet radio royalty arbitrations in the future so that it is the same standard that applies to satellite radio royalty arbitrations -- the 801(b)(1) standard that balances the needs of copyright owners, copyright users, and the public (rather than "willing buyer / willing seller"). (For more detail on this point, read the recent RAIN issue on "Copyright law," here.)

• Instructs future CRBs that the minimum annual royalty per service may be set no higher than $500.

• Establishes a "transitional" royalty rate, until the 2011-15 CRB hearing is held, of either .33 cents per listener hour, or 7.5% of annual revenues, as selected by the provider for that year. Those rates would be applied retroactively to January 1, 2006. (The logic behind this rate, incidentally, is an attempt to match the royalty rate that satellite radio pays for this royalty -- thus the name of the bill.)

• Expands the Copyright Act’s Section 118 musical work license for noncommercial webcasters to enable noncomms to also perform sound recordings over Internet radio at royalty rates designed for noncommercial entities, and sets an transition royalty at 150% of the royalty amount paid by each webcaster in 2004. (Note that this amount would be a set, flat fee through the end of the decade.) (NOTE: This paragraph contains a correction from earlier versions of this day's issue of RAIN.)

• For future CRBs (e.g., 2011-15), adds three new reports in the CRB process: The Assistant Secretary of Commerce for Communications and Information will submit a report to the CRB judges on the industry impact in terms of competitiveness of the judges' proposed rates; at the same time, the FCC will submit a report to the CRB judges on the effects of the judges' proposed rates on localism, diversity of programming, and competitive barriers to entry; and the Corporation for Public Broadcasting will submit a report to Congress and the CRB judges on the effect of the the judges' proposed rates on their licencees. (NOTE: This parargraph is an addendum to earlier versions of this day's issue of RAIN.)

Now that the bill has been introduced, the SaveNetRadio.org "call to action" is specific and direct: The site is now asking listeners to call their Representative and ask him/her to "cosponsor the Internet Radio Equality Act, introduced by Representative Jay Inslee." Once listeners click the "Call Your Representatives" button on the site and enter their zip code, they are given their Representative's House office phone number and a list of "talking points" to emphasize.

A copy of the bill in its current form (without an "H.R. ____" number attached to it yet), in .pdf form, is available here. More details tomorrow in RAIN.

(Your comments are invited using the feedback form lower on this page.)

Re-printed from this morning's issue of RAIN



BY KURT HANSON
Plans are coming rapidly together in support of next Tuesday's SaveNetRadio Coalition "Hill walk" in Washington D.C., with over 30 webcasters, musicians, and independent record label executives already committing their time and resources to this event.

In a "Hill walk" — as I first learned when we did this in 2002 [previous RAIN coverage here and here] — small groups of coalition members will spend the day going from Congressional office to Congressional office, meeting with members of Congress and their staffs to discuss a way to keep the Internet radio industry in the face of the CRB's decision setting excessively high royalty rates.

We're still looking for a few more articulate, committed webcasters and musicians to join us, including broadcasters who stream simulcasts of their AM or FM signals.  You'd need to be available starting 3PM Monday for a briefing session (which will be followed by a mid-evening club gig featuring the participating musicians) and all day Tuesday.

On Tuesday, May 1st, we'll split into smaller groups and each group will be assigned six or seven appointments to meet with staffers in various Congressional offices. 

If that schedule is viable for you, here are the next steps:

• Fill out the Hill Walk form (.pdf) and send to hillwalk@savenetradio.org.

• SaveNetRadio.org will be determining invitees based on putting together a mix of larger and smaller webcasters, geographic representation, etc.  You should hear back shortly.

• If you're coming, you'll need to find a place to sleep the night of April 30th.  Best bet: We've reserved a block of rooms at the Hilton in Olde Town Alexandria at the rate of $219/night. Guests will have to pay for the room with their credit card at check out. We will also be having our prep session there on Monday at 3pm and a breakfast there on Tuesday morning before the walk.  Our suggestion would be to have as many of us as possible stay at the Hilton to make things less complicated, and the costs will be comparable at other hotels. However, we completely understand if people want to look for themselves, but we really need to know as soon as possible to make arrangements.

• Then, if you are one of those who will be attending, call your Senators and Representative to schedule a meeting on Tuesday, May 1 with either (A) the member or (B) the staffer who works on Copyright, Internet and Small Business issues. Once you do that send an email to hillwalk@savenetradio.org giving the time of the meeting. We will be arranging other meetings but would like all participants to schedule a meeting with their specific representatives.

From the Globe & Mail: "One of Canada's biggest broadcasters is placing a bet that the future of radio isn't necessarily in radios.

"Rogers Communications Inc. may learn in the next month if it will get permission to start a pay audio service aimed at listeners outside of conventional radio, which could eventually be used to stream music to cellphones and Internet receivers in cars.

"The Canadian Radio-television and Telecommunications Commission began poring over the proposal in March...

"Rogers, which operates 51 AM and FM stations across the country, wants to create a 30-channel pay audio network, with a variety of music and talk formats. Much of the content will be original, but the company also plans to mix in conventional programs.

"If approved, the new business... would battle commercial radio, satellite radio, streaming audio on the Internet and music downloads on phones...

"'It's going to be about content that's going to be available on a number of different platforms whether its some kind of receiver in your car, some kind of receiver you're carrying around with you, or some kind of receiver in your house,' said Alain Strati, vice-president of regulatory affairs for Rogers Media...

"Meanwhile, Internet radio services are trying to position themselves for the day when wireless Web access is readily available in cars."

Read the entire article at the Globe & Mail.

From a press release: "Ando Media... announced today that Ed Zaleski, founder of Oddsock.org and former maintainer of the icecast project has joined Ando Media as VP of Software Engineering.

"Mr. Zaleski will lead the software engineering initiatives for ad operations systems and  trafficking services provided by Ando Media. He will also spearhead the development of Ando Media's newest online ad detection systems for radio...

"'Ed is one of the premiere engineers in the Radio and Internet space, and we're honored to bring him onboard,' said Jordan Mendell, Ando Media's CTO.'"

Here's feedback from our suggestion of another "Day of Silence" here...

"[A] second collective...?"