GridStream Productions

Dear Mr. Poxson:

Thank you for taking the time to contact me regarding your concern with the Copyright Royalty Board's (CRB) recent decision to increase the royalty rates charged to web-based music broadcasts. It is good to hear from you.

I understand your concern that federal copyright law has led to a potential double standard in royalty rates paid by web broadcasters versus traditional over-the-air radio. As you may know, the CRB is currently reviewing their previous decision and I am hopeful that a more amendable solution can be found. However, I also believe this case is another example of the need for fundamental reform of our national copyright system. A successful digital copyright system will have to be built on the principle of respect for the rights copyright holders, producers, broadcasters and consumers.

Again, thank you for taking the time to contact me. Please keep in touch.

Dear Cody,

Thank you for contacting my office regarding the recent rate hikes by the Copyright Royalty Board (CRB). It is an honor to represent the people of Eastern Washington and I appreciate you taking the time to share your thoughts with me.

As you know, on March 2, 2007 the CRB raised the royalties owed by both FCC-licensed broadcast stations that simulcast over the Internet and stand-alone Internet stations that stream music. This rate increase will apply from 2006 through 2010. The decision means a change in the way royalties are determined. They will now no longer be based on a percentage of revenue, but instead on a "per performance". This will mean rates will go up significantly over the next few years.

Because of the negative impact these fees will have on internet radio, National Public Radio officials have filed a petition for the CRB to reconsider their ruling. If they will not, many groups have pledged to take whatever legal action necessary to change the decision.

Because the CRB was created by Congress, and because of the detrimental effects this ruling is having on consumers and broadcasters, I will closely monitor this situation and look for appropriate ways to voice your concerns. Thank you for bringing this issue to my attention.

Best Wishes,
Cathy McMorris Rodgers
Member of Congress

Dear Mr. Lundquist:

Thank you for contacting me regarding music royalty rates and how they affect Internet radio. I appreciate hearing from you on this issue.

As you know, the Copyright Royalty Board (CRB) issued a ruling on March 9, 2007 that established a new structure of rates to be paid by commercial and noncommercial Internet radio webcasters. For commercial Internet radio webcasters, the CRB did not include any exceptions for “small” webcasters, or webcasters with small audiences. The CRB reasoned that no party had presented any evidence that could be used to create a different rate structure for “large” and “small” webcasters. As a result, all webcasters, regardless of their listening audience, will be subject to the new rates.

This ruling will affect many people who enjoy and listen to Internet radio, and many groups are informing Congress how this decision will affect their lives. I support open access for all consumers to the Internet, as well as efforts that increase innovation and competition on the Internet.

It is very likely that this issue will come up for consideration in the 110th Congress in order to deal with many different aspects of the CRB’s decision. If legislation is introduced, it will likely be considered in the Judiciary Committee, which I do not sit on. Rest assured, should legislation on this issue come up for debate in the full Senate, I will keep your views in mind.

Sincerely,

Patty Murray
United States Senator