SaveNetRadio Continues CPR

As I mentioned previously, internet radio stations are in trouble with a copyright royalties scheme that could cause their business models to crumble. While the action of SaveNetRadio has allowed for a partial reprieve, this should be ringing a few bells at internet governance levels as well.

From the Wired article, Net Radio Wins Partial Reprieve as Royalties Loom:

A coalition of webcasters have worked out a deal with the recording industry that could temporarily stave off a portion of crippling net radio royalties set to take effect Sunday, according to people familiar with the negotiations.

The deal is not final but creates a window for webcasters to continue broadcasting while a more lasting solution is sought. Webcasters have said the fees would effectively force many services that personalize individual channels for listeners to close shop by the end of the weekend.

For now, the parties involved in what's described as ongoing negotiations have agreed to waive at least temporarily the minimum charge of $6,000 per channel required under a scheme created by the Copyright Royalty Board, or CRB.

The deal, brokered late Thursday, is not final and could change. One person involved in the talks described the situation as a reprieve, and said that "internet radio won't be saved until a workable royalty rate is set."...

While it would seem that the Copyright Royalty Board is at the least amenable to some changes, some serious questions have to be asked. For example, is the Copyright Royalty Board of the United States the Mecca of how copyright royalties for the world work? Do they realize that they may be forcing internet radio to leave the United States to countries where such royalties are not levied?

What place does all of this have in the metaverse? I already pointed to policy problems related to the metaverse, and this is a more important aspect of the metaverse than many would think. Audio is a big factor, and virtual worlds presently use internet radio.

Interesting links include the Order Denying Motions for Rehearing (PDF, 26KB) and the Final Determination of Rates and Turns (PDF, 379KB). The latter has the groups that supported the royalty rates... including AOL, Microsoft and a few other of the usual suspects.