said by me three hours ago :

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RIAA-lobbied Copyright Royalty Board effectively increases Webcasting royalties 1,000%, threatens to bankrupt independent Internet Radio Operators.

From Kurt Hanson's Radio And Internet Newsletter (RAIN) comes news that the Library of Congress' Copyright Royalty Board, which sets the rates that Internet broadcasters pay for the rights to play music on the Internet, has retroactively set a new rate schedule for 2006 which amounts to 125% or more of even the best-run webcaster's monthly income.

Radio Paradise's Bill Goldsmith, who is staring at an increase from $5,000 to over $50,000 a month, reacts:

"Maybe I'm just a hopeless optimist, but I find it hard to believe that a decision as thunderingly misguided as this one will stand. This royalty structure would wipe out an entire class of businesses: small independent webcasters such as myself and my wife, who operate Radio Paradise.

Our obligation under this rate structure would be equal to over 125% of our total income. There is no practical way for us to increase our income so dramatically as to render that affordable.

What makes our operation so different from satellite services like XM & Sirius, who pay royalties based on a percentage of their revenue (as we have been doing up to this point)? Sadly, the only thing I can think of that sets us apart is they can afford squadrons of attorneys to defend themselves against the predatory attacks of the major music conglomerates, and we cannot.

That's a truly sad — and deeply un-American — state of affairs. I can only hope that the copyright board recognizes their error in time for the business that I have devoted 7 years of love, sweat, time, and energy building up is torn to pieces by the wolves of the music industry. "

Outfits like Live365 and AOL's Shoutcast are also affected. Some quick math comes up with a monthly Shoutcast tribute to the RIAA's SoundExchange coffer of around $1.65 million, or about $20 million for 2006.

Now is probably a good time to contact your favorite webcaster and give them a little encouragement. They're going to need every bit they can get. Even the smallest hobby operation is on the hook for $500 a year or more.

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