Internet Royalty Fee Set At Seven Cents Per Song

The U.S. Copyright Office has decided on royalty fees for recorded music delivered over the Internet at .07 cents per song, which is roughly half the rate originally proposed by an arbitration panel in May. However,
there is some dispute about whether it constitutes a victory
or a defeat for Internet music broadcasters.

The head of the Copyright
Office, Librarian of Congress James H. Billington, determined that the earlier proposal was "arbitrary and not supported by the record of evidence." Some analysts said the
new rate will likely make it possible for Webcasters to
stay in business. But Kevin Shively, director of interactive media for, told the Washington Post
the ruling is devastating for his business. "This will put
us out of business," he said. "This is going to destroy
Internet radio."