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US Internet Radio Stations to shut down


End of an era


The age of small Internet Radio Stations is set to end on Sunday, at least in the US, after a final bid to stop hike in copyright fees failed.

The D.C. Circuit Court of Appeals has refused to stop an increase in royalty and broadcasting fees which will come into play on Sunday

At the demand of the recording industry, the Copyright Royalty Board, which is part of the Library of Congress, decided in March to almost triple royalty rates by 2010 and impose an annual $500 fee per station or channel.

Already some smaller Web stations shut down in anticipation of the higher fees. More say they will close as a result of the court decision.

SoundExchange claims it is all about artists getting paid fairly. However most of the artists will not get a penny from the extra fees which are only for SoundExchange members.

Many independent bands who depend on Internet radio for coverage are not SoundExchange members and therefore will not get paid.

Last modified on 13 July 2007
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