CRB Denies Appeals for Royalty Rate Changes

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CRB Denies Appeals for Royalty Rate Changes

Apr 23, 2007 11:00 AM

Washington - Apr 16, 2007 - The Copyright Royalty Board (CRB) has upheld its earlier decision on royalty rates to be paid by streaming services via the Internet. In addition, the three-judge panel has also denied motions for a rehearing of its March 1 decision that set performance royalty rates for Internet radio for the period from 2006 to 2010.

The CRB ruling noted that it did not see a sufficient showing of new evidence or error that would warrant a rehearing. The CRB also stated that it will not delay implementing the new rates because there are now no relevant pending appeals. The CRB cited a portion of the Congressional Copyright Act: "Congress, not the judges, determined the effective dates for the royalty rates. Congress determined that these rates would go into effect notwithstanding any pending motions for rehearing."

Online searches show that the only group that supports the CRB's decision is Sound Exchange, the entity that was established to collect the royalty fees. The royalty rate hikes will likely force many Internet radio streamers off the Internet.