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The following is a response I received from Congressman Mike Honda regarding my letter expressing concern about the Copyright Royalty Board's recent decision to approve raising royalty rates for Internet Radio. Please contact your Senators and Representatives regarding this issue. Here's a link to send an email:
Contact your Senators and Representatives
Thank you for contacting me regarding the threat that new royalty payments pose to Internet radio stations. The issue is of great importance to me, and I appreciate your thoughtful comments on the matter.
As you may be aware, in 2002, the Library of Congress, under a recommendation from the Copyright Arbitration Royalty Panel (CARP), required that Internet radio stations pay prohibitively high royalty rates for the music they stream to listeners. After a failed appeal made by both webcasters and copyright owners, and a series of unsuccessful negotiations between the Recording Industry Association of America (RIAA) and Internet radio stations, Congress created the Copyright Royalty Board (CRB) under the Library of Congress to determine new royalty fees.
Under an agreement reached in 2002 made by the CRB, internet radio stations are required to pay royalties which constitute about 6 to 12 percent of the stations' revenues. However, this agreement has expired, and the CRB recently proposed raising the amount that commercial internet radio services pay to record companies by up to 30 percent.
When these negotiations took place in 2002, I advocated that the LOC take a more measured approach that would encourage the development of Internet radio stations. In addition to sending letters to the Librarian of Congress, I also cosponsored legislation that would reform the CARP process, as well as the decision to increase royalty fees in the 107th Congress. At a hearing before the House Telecommunications and Internet Subcommittee of the Energy and Commerce Committee, Chairman Rep. Edward Markey criticized the CRB's proposal, stating that it creates a further imbalance between what different radio industries pay. Thus far, no further congressional action has been taken, but I will continue to monitor this issue closely as relevant legislation arises in the House.
Once again, thank you for taking the time and effort to share your opinions with me. Please continue to keep me apprised of issues important to you.
Sincerely,
Mike Honda
Member of Congress