Full Committee Hearing on "Assessing the Impact of the Copyright Royalty Board Decision to Increase Royalty Rates on Recording Artists and Webcasters.

Yesterday the House held a hearing in response to the Day of Silence. But BusinessWeek says:

Small Webcasters intent on keeping Internet radio stations from going out of business best not look to Congress for help. That's the message from a June 28 House of Representatives hearing aimed at resolving a dispute over efforts to increase the royalties paid by Web radio stations to musicians and record labels for spinning their songs.

House Small Business Committee Chairwoman Nydia Velazquez said she'd prefer Webcasters and the music industry come up with their own compromise. "I really don't think Congress would be the best type of vehicle to resolve this type of issue," she said after the testimony of seven witnesses, including independent record-label owners, musicians, and Webcasters. "July 15 is just around the corner, and I hope the two parties can come together and resolve this issue."

Congress created the rule system, at the behest of the music industry, that has been used to constrain the development of internet radio. Already that rule system has resulted in small webcasters going off the air completely for a 6 month period of time. That shutdown was not resolved until threats emerged from Congress. Today we stand at such a precipice again. Congress is responsible, and Congress will take responsibility. Unfortunately it appears they will only take responsibility after another shutdown. I think this time the volume of the response after a shutdown is apt to be much, much louder than it was last time. I think Congress is in for a surprise

Impact of Royalty Increases on Internet Radio