A Letter from Sen. Dick Durbin (D-IL) Regarding Internet Radio

Earlier in the summer, I sent Senator Dick Durbin (D-IL) a petition letter based on the one provided by SaveNetRadio.org and the following was his response. I am not sure what his response means, but I hope he really does understand that implications of restricting the marketplace of ideas.

September 24, 2007

Dear Mr. Choi:

Thank you for contacting me regarding the increase in royalty rates for webcasters. I appreciate hearing from you.

In 2002, Congress passed the Small Webcasters Settlement Act (SWSA), which allowed small webcasters to pay royalties based on a percentage of revenue rather than on a per-song, per-listener basis. The royalty rates established in this legislation, however, were only effective through 2005.

Shortly after the expiration of SWSA, the Copyright Royalty Board (CRB) announced new royalty rates, effective until December 31, 2010, that required small webcasters to again pay on a per-song, per-listener basis. Despite opposition from the Digital Media Association, National Public Radio, and others, these rates went into effect on July 15, 2007.

During the last several months, the CRB has been negotiating with webcasters in an attempt to reconcile their differences and establish royalty rates that are both fair and legal.

In addition, the Internet Radio Equality Act of 2007 (S. 1353) was introduced on May 10, 2007. This measure would nullify the new royalty rates and also would change the standards for determining "reasonable" rates and terms for royalties. Supporters of this bill believe it would protect the viability of small webcasters, who often see their programming as a public service broadcasting and who expand the diversity of music available on the web. Opponents claim that the CRB ruling was fair and took into consideration the best interests of all parties involved.

This legislation has been referred to the Judiciary Committee, of which I am a member. I will keep your thoughts in mind as the committee considers this issue.

Thank you again for taking the time to contact me. Please feel free to keep in
touch.

Sincerely,
Richard J. Durbin
United States Senator

Who else thinks this is a cut-and-paste job?