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The Digital Media Association and SoundExchange, collectors of royalty fees for record labels, have reached an agreement that will save internet radio for the time being.
Music industry group that collects royalty payments has offered a compromise, but it's unclear whether it will go far enough to please disgruntled Webcasters.
In an interview with The Washington Post, founder Tim Westergren said the company will be forced to shut down soon if the legal climate doesn't start to favor Net radio.
The social music suggestion site has inked a deal with the major label, giving Last.fm legitimate access to stream Sony's entire catalogue to users of its site
Under pressure from fans of Internet radio, royalty-collection group SoundExchange will not raise royalty rates until the end of 2008, but the threat could still staunch the growth of Net radio.
Large and small Internet radio operators and National Public Radio file for an emergency stay to the new rules, scheduled to take effect July 15.
Internet radio might die soon, assuming the current fees that go into place next month aren't re-evaluated.
The latest front in Webcasters' protest of elevated royalty fees is a "day of silence," and some larger stations are expected to participate.
Webcasters will have two extra months--until July 15--to prepare to hand over steeper royalty fees. Some are vowing to get Congress involved.
blog Federal copyright panel largely upholds a contentious decision that would elevate royalty fees Webcasters must pay to record labels.