Washington - The U.S. Copyright Royalty Board on Friday set new royalty rates for webcasters operating non-interactive radio stations, which will increase annually through 2010 and require Web radio stations to pay for each song streamed to each user.

The retroactive rate for 2006 was set at $0.0008 per song per user, with rates increasing annually to $.0011 (2007); $.0014 (2008); $.0018 (2009); and $.0019 (2010).

The rates set by the CRB are in line with those suggested by SoundExchange, an entity set up by record labels to collect and distribute digital royalties.

Critics of the new royalty rates say that they could be equal to or greater than the total revenues generated by many webcasters, and end up forcing them offline.

The Radio and Internet Newsletter (RAIN) estimated the rate for an average station that plays 16 songs per hour at 1.28 cents per listener hour, while such a station might generate total revenues of 1.0 to 1.2 cents per listener hour, when estimated ad revenue is factored.

The participants in the process now have 15 days to request a rehearing of the rates set by the CRB.

After rates are officially set and published in the Federal Register, parties have 30 days to appeal to the U.S. Court of Appeals for the District of Columbia.

Related Links:
http://tinyurl.com/2t36q6 (RAIN)

http://tinyurl.com/34yqnf (Broadcast Law Blog)

http://blog.wired.com/music/2007/03/us_copyright_ro.html

http://www.soundexchange.com

http://www.webcasters.org

http://www.loc.gov/crb