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But traditional radio broadcasters have been exempt from paying the
royalties now being applied to Webcasters after successfully arguing
before lawmakers that they already were promoting the music.
The new royalties, which would go to music labels and
musicians, had long been sought by the recording industry from traditional
broadcasters without success. So, the industry turned to webcasters and
got its wish in a 1998 law.
In February, a
Washington, D.C., arbitration panel set royalty rates that could cost
Abbett $10,000 a year — a third of his budget and nine times what he now
pays composers and publishers. Larger Webcasters could owe hundreds of
thousands of dollars annually.
Under
procedures established by Congress, the U.S. Copyright Office has until
May 21 to accept, reject or modify those rates — which are retroactive to
1998.
GROWING POPULARITY
Internet radio is now popular at work and is becoming
popular in homes as more people get high-speed connections. It is expected
to become more mainstream as wireless devices proliferate, allowing
listeners to tune in while walking or driving. |
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