Net Radio Bill Passes House
Web radio stations live to fight another day.
The House of Representatives has unanimously passed a bill that Web radio stations have painted as life or death for their services.
The Webcaster Settlement Act, which would allow Internet radio stations to negotiate with the music industry for a royalty rate lower than what Congress mandated last year, passed the House by a voice vote on Saturday.
Proponents of the bill had predicted a close vote.
Tim Westergren
(Credit: CNET News)
Tim Westergren, founder of Net music service Pandora, said he was elated about triumphing in the House, which came after traditional radio broadcasters withdrew their opposition.
Dennis Wharton, a spokesman for the National Association of Broadcasters, said Saturday night that Rep. Howard Berman (D-Calif.) had met with representatives of the group and addressed some of their concerns.
As a result, the NAB dropped its opposition in the House and will not oppose the bill when it moves to the Senate for a vote, either Sunday or Monday.
“The bill having passed unanimously in the House certainly gives it momentum heading into the Senate,” Wharton said.
Webcasters are fighting for the right to negotiate with the music industry to reduce the royalty rates they must pay to stream music over the Web. Any deal must be approved by the federal government.
Congress is expected to adjourn on Monday, and the Webcaster Settlement Act enables Internet radio stations to reach an agreement with the music industry while Congress is out of session.
Westergren, who has emerged as a de facto spokesman for the bill, said some Web radio stations can’t afford a long delay in the talks. Right now, the law requires them to pay the older royalty rate, which Webcasters say will soon drive them out of business.
“It would be a killer blow,” Westergren said. “If we don’t get it passed now, it would mean waiting for a whole new Congress and administration and lots of uncertainty.”
As for the legislation’s chances in the Senate, Westergren said he’s cautiously optimistic.
“I’ve become gun shy because I’ve been burned so many times before,” he said. “We’re waiting to see what happens and consulting with our friends (in Congress).”
posted by Greg Sandoval - cnet.com
Thanks for posting this. All of us at taintradio have a lot riding on what happens with this bill, as does everyone who supports the idea of music being played on the Internet and musicians being fairly compensated by those entities or individuals who play it.
We’re trying to establish taintradio as a listener-
supported source of 24/7 music, which may or may not be a sustainable idea. The passage of this bill in the Senate and subsequently into law would certainly make our listener-support idea much more likely to succeed.
A non-commercial listener-supported Internet station that is able to pay its music licensing obligations and broadband costs is only a theory until it actually works.
No one at taintradio does this for money. All of us are working as volunteers and all of our start-up costs have been donated. Music licensing and broadband are just about our only expenses and paying those bills our only financial goal. But it has to be affordable. Passage of this bill gives us a much better shot at that.
Bob Rogers