From a post on David Oxenford's Broadcast Law Blog: "...This action highlights [the] fact that it is not only the Copyright Royalty Board decision on U.S. royalties that is causing uncertainty for many Internet radio stations. 

"Royalty obligations for overseas listening also adds to the uncertainty and potential liabilities of these services.  Several U.S. Internet radio stations have in the past received royalty notices from overseas collection agencies, asking for royalties for the use of sound recordings that are streamed to users in their countries.  This had caused other U.S. streaming companies to block access to their service to foreign listeners.

"As the royalties that are paid to SoundExchange only cover US listening, until there is a reciprocal agreement between these collection agencies allowing one country's agency to collect for worldwide usage and then distribute the money to the appropriate rights holders worldwide, potential liabilities to multiple worldwide collection agencies will persist. 

"At last week's Future of Music Policy Day in Washington, DC, SoundExchange President John Simson said that SoundExchange was hosting a meeting in Washington for representatives from a number of international collection agencies in efforts to work out an agreement that would provide a reciprocal collection and distribution agreement for Internet radio services.  In this instance, Internet radio operators should be on the same side as SoundExchange, rooting for its success in this negotiation to provide one-stop shopping for royalties for all of their listeners.

"This also should remind Internet radio services that, when paying SoundExchange on a per performance basis, they are paying for performances to US residents only.  Any amounts that a service might have thought about paying to SoundExchange for performances to foreign listeners should be paid to the royalty organizations in the countries where those listeners reside.  One more concern for Internet radio companies to keep in mind in staying legal."

Read the entire blog post at the Broadcast Law Blog.

"This week started off in Washington DC as I joined with Artists, Webcasters and others to try and get Congress to step in and Save Net Radio by passing the Internet Radio Equality Act.

"Usually it shows up in a song when I have an issue I feel strongly about, but I felt it necessary to change my schedule around and be on the Hill this week after reading about the increase in Internet Royalty Fees that are coming... As a songwriter and Artist I truly appreciate what Sound Exchange and the RIAA and other Performance Right Organizations (including my own which is BMI) have been able to do over the years to make sure that my songs when played are actually credited to me and then a royalty is paid for them.  All of these organizations as well as ASCAP and SESAC are there for the artists.

"That said... I truly feel that the proposed fees are going to be so significant that many webcasters will be forced out of business.  I met with Broadcasters from around the country this week and NPR and all of them feel that these proposed increases will put many webcasters out of business immediately.  Pandora, Live 365 and AOL music are the biggest ones and even they do not know how they would afford these fees.

"Many of you reading this first found my music through the internet and I love knowing that no matter where you live if I do Radio and it is streamed or a venue does a webcast that you can join us.  While I want and need to get paid, one large check does not make up for losing touch with you.

"Please check out the SaveNetRadio.org site and see how you can help keep us connected... The difference is that terrestrial broadcast radio plays between 50 and 100 artists in any given week, internet radio plays an average of 6400 artists a week and some up to 33,000 each week.  This new freedom of music, this diversity and upward trend of music buying on the net is in my opinion the first step in democratizing the broadcasting network.  This click gives you the opportunity to tell congress that you enjoy the right to hear more. The CRB ruling needs to be vacated and a reasonable percentage needs to be used when setting the new royalty rates so that it is fair to the artists while not bankrupting the broadcasters that are playing our music.

-SONiA