This Sunday may not be doomsday after all for the smaller Internet radio stations that feared the onset of new royalty fees would kill off their operations.
But contrary to some published reports traversing the blogosphere on Thursday and Friday, SoundExchange, the nonprofit group charged with collecting the payments, has not made any sort of blanket pledge to delay enforcing the contentious new Webcaster payments established earlier this year by the U.S. Copyright Royalty Board, according to spokesman Richard Ades.
"There is a misunderstanding, and SoundExchange is making it very clear that everybody is expected to comply with the law," Ades told CNET News.com Friday.
The CRB ruling at issue requires Internet radio operators to pay additional fees to SoundExchange, which passes them on to artists and record labels, retroactive to 2006 and through 2010. Webcasters opposed to the new rules say the changes could drive up their mandatory payments by as much as 300 percent for larger entities and 1,200 percent for smaller ones, arguing such increases could put them out of business.
Here's where it gets complicated.
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