Copyright Royalty Board Upholds "Disastrous" Royalty Rates

New royalty rates, which webcasters say threaten to drive them out of business, have been upheld by the U.S. Copyright Royalty Board, who refused webcasters' pleas for a rehearing today. Instead, the board decided -- again -- that the rates, which were proposed by the RIAA-affiliated SoundExchange, are fair. The judges also evidently felt they wouldn't hear anything new during a rehearing.

SoundExchange called this a victory for the artists it purports to represent with or without their consent (artists and labels can register with the site in order to receive money collected in their names -- unclaimed royalties are ostensibly kept).

In addition to upholding the rates, the CRB denied a webcaster request that would have put a stay on the new rates "until all legal appeals had been exhausted."

Now it's up to Congress [update: or, apparently, the US Court of Appeals for the District of Columbia]. DiMA's executive director Jon Potter's statement asked Congress to set more manageable rates in order to enable webcasters to remain online:

"The CRB's denial of a rehearing today is all but a nail in the coffin for Internet radio, and May 15 now looms as the day the music will die. Internet radio provides exposure and royalties for thousands of independent artists and labels that are not represented by broadcast radio – and last year, 72 million people tuned in every month. We call on Congress to step in to save Internet radio for the artists, the labels, the webcasters and – most importantly – the tens of millions of listeners."

If you support small webcasters on this one -- or, like David Byrne, you think the new rates undermine democracy -- find out how to contact your Congress person here.