The Internet Radio Equality Act (.pdf) has just been introduced (in mid-afternoon) by Representative Jay Inslee (D-WA, pictured right) and eight cosponsors, with more cosponsors on the bill expected shortly.

The bill has five major provisions:

• Nullifies the recent decision of the CRB judges
  

• Changes the royalty rate-setting standard that applies to Internet radio royalty arbitrations in the future so that it is the same standard that applies to satellite radio royalty arbitrations — the 801(b)(1) standard that balances the needs of copyright owners, copyright users, and the public (rather than "willing buyer / willing seller"). (For more detail on this point, read the recent RAIN issue on "Copyright law," here.)

• Instructs future CRBs that the minimum annual royalty per service may be set no higher than $500.

• Establishes a “transitional” royalty rate, until the 2011-15 CRB hearing is held, of either .33 cents per listener hour, or 7.5% of annual revenues, as selected by the provider for that year. Those rates would be applied retroactively to January 1, 2006. (The logic behind this rate, incidentally, is an attempt to match the royalty rate that satellite radio pays for this royalty — thus the name of the bill.)

• Expands the Copyright Act’s Section 118 musical work license for noncommercial webcasters to enable noncomms to also perform sound recordings over Internet radio at royalty rates designed for noncommercial entities, and sets an transition royalty at 150% of the royalty amount paid by each webcaster in 2004. (Note that this amount would be a set, flat fee through the end of the decade.) (NOTE: This paragraph contains a correction from earlier versions of this day’s issue of RAIN.)

• For future CRBs (e.g., 2011-15), adds three new reports in the CRB process: The Assistant Secretary of Commerce for Communications and Information will submit a report to the CRB judges on the industry impact in terms of competitiveness of the judges’ proposed rates; at the same time, the FCC will submit a report to the CRB judges on the effects of the judges’ proposed rates on localism, diversity of programming, and competitive barriers to entry; and the Corporation for Public Broadcasting will submit a report to Congress and the CRB judges on the effect of the the judges’ proposed rates on their licencees. (NOTE: This parargraph is an addendum to earlier versions of this day’s issue of RAIN.)

Now that the bill has been introduced, the SaveNetRadio.org "call to action" is specific and direct: The site is now asking listeners to call their Representative and ask him/her to "cosponsor the Internet Radio Equality Act, introduced by Representative Jay Inslee." Once listeners click the "Call Your Representatives" button on the site and enter their zip code, they are given their Representative’s House office phone number and a list of "talking points" to emphasize.

A copy of the bill in its current form (without an "H.R. ____" number attached to it yet), in .pdf form, is available here. More details tomorrow in RAIN.

“Day of Silence” webcasters

More and more webcasters are signing on to our proposed "Day of Silence" taking place Tuesday, May 8 [read full details in RAIN here]. Below is a growing list of webcasts that have agreed to go "dark" for the day:

Commenting is closed for this article.

Other blog entries
Kurt's summary of the Internet radio royalty dispute
iPhone's radio apps are a canary in a coal mine
Part 2: DI's Ari Shohat on how to grow audience
Digitially Imported's Ari Shohat reveals how he built a huge global audience
Emmis's Jeff Smulyan responds re: FM in cell phones
Ramsey: "Broadcasters don't understand the radio 'experience'"
Honolulu's Brock Whaley: "I have heard the future in my car"
Newspaper seems intent on driving print subscribers away
CBS Radio gets it; Mason and Goodman appear in Chicago
Radio Heard Here is a misguided campaign