Internet Radio Getting Closer to Solving Royalty Problem

Internet radio stations are getting closer to solving their problem of royalty rates. For quite a while, the concern has been that the current proposed royalties would put every single independent radio station out of business, leaving only the 'corporate' trash. CNET reports that the Webcaster Settlement Act passed the House and Senate and is on its way to the President. It doesn't answer the royalty question, but it permits the involved parties to negotiate an agreement towards a lower rate. They have until February 2009.

What will the new rates be? It's anyone's guess, but at least we know it will be lower than the rates everyone's worrying about now. That is, unless the parties don't reach an agreement.