We reported to you yesterday on a development in the controversy over the increase of copyright royalty fees for Internet radio.
Statements from several small webcasters and reports in the trade press indicate that there will be no deal. These webcasters are apparently balking for three reasons:
1. They are insulted by yet another attempt to "subdivide and conquer" the Internet radio industry by providing short term relief to one (vocal) segment with an eye to preventing major reforms for the longer term.
2. The $ 1.25 million annual gross revenue cap for small webcasters -- carried over from 2002 -- is too low and neither reflects the reality of the way in which Internet radio has grown and will continue to grow.
3. The 5 million listener cap per month is too low, both for present and future purposes.
This appears to stall negotiations once again. We'll see if Congress finally steps back into the breach when it returns in September.
