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Internet Radio Equality Act Introduced in U.S. Congress

April 29, 2007

U.S. Reps. Jay Inslee (D-Wash.) and Donald Manzullo (R-Ill.) have filed the Internet Radio Equality Act.

The two legislators say  they hope that if the act is enacted into law, it will "prevent the demise of Internet radio."

The Internet Radio Equality Act would supersede  the federal Copyright Royalty Board's recent edict that would greatly increase the royalties Internet radio broadcasters must pay to copyright holders in order to gain rights to play a song.

If the current ruling is allowed to take effect Om May 15, the current royalty rate will change from a percentage of revenue to a per-listener, per-song fee that would increase from now until 2010.

The Inslee-Manzullo Internet Radio Equality Act would apply a common royalty rate-setting standard to commercial Internet radio, as well as satellite radio, cable radio and jukeboxes. The general rate would be 7.5% of revenue, effective for the next three years.

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