Washington - Large Internet radio purveyors AOL (NYSE: TWX), Yahoo (NASD: YHOO), RealNetworks (NASD: RNWK), Pandora and Live365 earlier this week sent a letter to key lawmakers in Washington, asking them to consider performance royalty parity for broadcast, satellite, cable and Internet radio. The letter was addressed to U.S. House Intellectual Property Subcommittee Chairman Howard Berman (D-Calif.) and Senate Judiciary Committee Chairman Patrick Leahy (D-Vt.), whose committees are currently re-evaluating the broadcast radio industry's royalty rate exemption.

The letter comes as both AOL and Yahoo have suggested they may shutter their Web radio services as a result of new, higher royalty rates set by the Copyright Royalty Board.

For many webcasters, the new rates equate to over 50% of revenues.

Earlier this week, the Copyright Royalty Board set new rates for satellite radio royalties at 6%, increasing to 8% by 2012.

"All radio services compete for advertising dollars, paying subscribers, or both. Our companies compete aggressively with one another, and with broadcast, satellite and cable radio," reads the letter, which is signed by the CEOs of RealNetworks, Live365 and Pandora, and heads of Web radio divisions at AOL and Yahoo.

"Our ability to offer innovative and competitive services to American listeners is undermined, however, by laws that create vastly disparate royalty obligations."

The large webcasters have been represented in negotiations with SoundExchange and lawmakers by the Digital Media Association (DiMA) trade group.

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