Webcasters and Record Labels Reach Agreement

A two-year agreement has been reached between small Webcaster Internet radio stations and the record labels. The royalty rates imposed by the Librarian of Congress on small Internet stations - averaging $92 per listener - are threatening to put them out of business. The agreement covers only Webcasters with less than $1 million in revenue, and provide for these stations to pay past and future royalties equal to 8-12% of their revenue, or 5-7% of their expenses, whichever one is the greater. Still at issue are the Webcasters' royalty payments to the artists of the music. However, unless Congress acts promptly to implement this agreement into legislation, these Webcasters will be stuck with three years of back royalties at the original, full rate.