A federal appeals court refused to delay the Sunday implementation of new royalty rates that will bankrupt many webcasters and force others to become more like terrestrial radio if they want to continue to operate. Webcasters had appealed for an emergency stay of the rates to the Court of Appeals for the District of Columbia Circuit, but the court decided not to do so on yesterday, announcing its decision today -- three days before the rates go into effect.
But the fight to save internet radio is not over. Congress could still intervene, though the Sunday deadline when the rates will be implemented is drawing near. Webcasting royalty payments for January 1, 2006 to July 1, 2007 due on Monday morning -- $.0008 times the number of songs played per listener, plus a $500 per-channel-per-year payment that would instantly crush webcasters that offer personalized streams for each listener.
Jon Potter, executive director of DiMA (which represents many webcasters), hopes Congress will do something about the rates before they go into effect on Sunday:
(via latimes)*
