BY DANIEL MCSWAIN
The House Commerce Committee is calling on representatives from the webcast and recording industries to meet today to discuss a settlement that would provide Internet radio operators with a workable alternative to the proposed CRB rates scheduled to go into effect Sunday, according to an article in the Hollywood Reporter.

Discussion between the two sides comes at the behest of Rep. Ed Markey (D-MA) (pictured right), who has actively voiced concerns in Congress regarding the CRB's disastrous effects on the webcast industry.

In a March hearing titled "The Future of Radio", Markey, chairman of the House Commerce Committee's Telecommunications and Internet Subcommittee, called the CRB ruling "a body blow to many nascent Internet radio broadcasters and further exacerbates the marketplace imbalance between what different industries pay," [previous RAIN coverage here].

According to the report in The Hollywood Reporter, "The Commerce Committee is usually seen as a less-hospitable venue than the Judiciary Committee. While the Judiciary Committee usually handles copyright matters, the Commerce Committee has jurisdiction over the Internet."

Facing a similar royalty deadline in 2002, Rep. James Sensenbrenner (R-WI) forced a meeting between SoundExchange representatives and small webcasters, charging both sides to formulate a workable solution, a meeting which led to the creation and adoption of the Small Webcaster Settlement Act.

RAIN has learned that the U.S. Court of Appeals for the D.C. Circuit has denied webcasters' "Motion to Stay" the new webcast royalty rates, further dimming Internet radio's hopes against crushing fees  going into effect Sunday, July 15th.

On May 30th, various groups representing webcasters filed an appeal of the Copyright Royalty Board's March 2nd determination on the rates webcasters pay to play copyright music on the Internet.

At that time, DiMA (the Digital Media Association, representing large webcasters), small webcasters, and NPR (National Public Radio) also filed "Motions for Stay," requesting the Court place a hold on the CRB's decision while the appeal progresses (reported in RAIN here).

The Department of Justice (which represents the CRB in defending their decision) and SoundExchange each filed oppositions to the Motion for Stay. (Attorney David Oxenford has more detail on the "Motion for Stay" arguments in his Broadcast Law Blog.)

Apparently, the court's denial of the emergency stay is a very brief "form" order that just says that the parties didn't meet the high burden necessary to establish that a stay should be granted, which include a "likelihood of success on the merits." (In other words, you have to convince the court that you are going to win before you even file your brief or have an argument.)

RAIN will report further on this story later today with updates as they become available.

...

... It is our understanding that following the defeat of the Motion to Stay petition, SaveNetRadio.org is directing webcasters, artists, labels, and listeners to contact all members of Congress to urge support for immediate action to bring the Internet Radio Equality Act (H.R. 2060 and S. 1353) to the floor for a vote. In what could be the last viable hope to save Internet radio, organizers are stressing that this will require the most aggressive communication to supporters possible. Webcasters and listeners need to begin calling immediately, starting first with their Senators, and then their Representative. It's important to note that supporters should even call those Senators and Representatives that have already cosponsored the IREA, and urgently request an immediate floor vote on the bill! SNR organizers are hoping to flood Capitol Hill with calls starting at 9AM. (An update to the SaveNetRadio website should appear shortly.) Please reference SaveNetRadio.org for other details and links to PSA audio files. -- PM ...

Webcasters interested in motivating their listeners to action today are invited to use the following copy (as written by SaveNetRadio): URGENT URGENT URGENT IMMEDIATE ACTION NEEDED FOR THURSDAY, JULY 12TH Time and options are running out for Internet Radio. Late yesterday, the U.S. Court of Appeals DENIED the emergency stay sought on behalf of webcasters, millions of listeners and the artists and music they support. UNLESS CONGRESS ACTS BY JULY 15th, it is the end of the road for Internet radio. We are appealing to the millions of Internet radio listeners out there, the webcasters they support and the artists and labels we treasure to rise up and make your voices heard before this vibrant medium is silenced. This situation is grave, but that makes the message all the simpler and most serious. CALL YOUR SENATORS AND REPRESENTATIVES RIGHT AWAY and urge them to support the "Internet Radio Equality Act." If they've already co-sponsored, thank them and tell them to fight to bring it to the floor for an immediate vote. If the line is busy, call back. Call until you know your voice has been heard. Your voices are what have gotten us this far -- Congress has listened. Now, they are our only hope. TELL THEM. We are outmatched by lobbying power and money but we are NOT outmatched by facts and passion and the power of our voices. =============== The exact page of the SaveNetRadio.org website that allows you to look up Congressional office phone numbers is here: http://www3.capwiz.com/saveinternetradio/alert_9738601.html .

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