From the Radio and Internet Newsletter, more evidence of the widespread impact of the Digital Millennium Copyright Act:
Hundreds of Internet radio stations and channels across America are shutting off their music streams on Wednesday, May 1st, in a \”Day of Silence\” to highlight their concern over the upcoming U.S. Copyright Office ruling on royalty rates that may shut down or bankrupt the vast majority of the nascent Internet radio industry.
The Librarian of Congress is required to set \”sound recordings performance royalty\” rates for Internet radio stations by May 21st — and an arbitration panel (a \”CARP\”) working for that office has recommended a rate of $.0014 per listener per song (or $.0007 for broadcast simulcasts). Many webcasters say the proposed royalty rate is the equivalent of 200% or more of their revenues . . .