A US District Court Judge has refused to overturn a decision of
the US Copyright Office that forces terrestrial radio broadcasters
to pay royalties to copyright owners for music that they webcast.
The court decision has set aside the fears of webcast-only
businesses, concerned that their terrestrial radio station rivals
would be exempt from paying webcast fees.
In the US, radio stations are exempt from paying royalties to
artists and record companies where the broadcast is made within a
150-mile radius of a radio transmitter or retransmitter. This
exemption is based on the understanding that radio broadcasts of
music provide publicity for artists.
However, the US Digital Millennium Copyright Act obliges
webcasters to pay royalties in order to protect copyright
interests. If the court had extended the exemption already enjoyed
by radio stations to include broadcasts made by them over the
internet, then webcasters acting independently of traditional radio
stations would have been disadvantaged.
The decision has also been welcomed by the Recording Institute
Association of America (RIAA), which represents the interests of
copyright holders in the music industry and had supported the
Copyright Office throughout the proceedings.
