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Inslee listens to a constituent.

Montage of Wing Point in Bainbridge Island and the Edmonds Ferry.

Jay Inslee: Washington's 1st Congressional District

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Inslee Introduces "Internet Radio Fairness Act"
Royalties Paid by Web Radio Stations Should be "Fair But Not Free"

26 July 2002

[ Read the text of the legislation ] (Adobe Acrobat *).

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Disappointed in the Librarian of Congress' recent imposition of high fees on web radio broadcasters and the resultant shut-down of many web radio broadcasts (including KIRO and KMTT in Seattle), U.S. Reps. Jay Inslee (D-WA), George Nethercutt (R-WA), and Rick Boucher (D-VA) introduced new legislation to change existing web radio laws. The "Internet Radio Freedom Act," H.R. 5285, is designed to make the copyright royalty arbitration process more fair for smaller entities. It has been referred to the Committee on the Judiciary in the House of Representatives.

Said Inslee, "Congress should support creative and innovative uses for new technology, not drive small web radio broadcasters out of business with huge fees. We need to refine the current law on digital technology quickly, before more small web radio broadcasters are forced out of business. Changing the standard for setting royalty rates is crucial to the survival of this innovative sector. We seek a balance between just compensation and Internet development. This process must be fair but not free."

Said Nethercutt, "No one wins under the current CARP standard -- webcasters will close shop, consumers lose access to a wide selection of programming, and copyright holders collect nothing. Our legislation protects small businesses from the onerous CARP ruling, ensuring the continuation of webcasting, and incidentally, creating a long-term revenue stream for copyright holders."

Said Boucher, "Unfortunately, both the CARP and the Librarian of Congress were working under a flawed law that has produced a royalty rate which harms not only the hundreds of webcasters that have already shut down operations, but also Internet users seeking innovative music programming and artists seeking alternative avenues through which to promote their music."

Currently, a Copyright Royalty Arbitration Panel (CARP) meets once every two years to decide on royalty fees for web radio broadcasters. The first webcasting CARP was completed in February, but the rate decisions were modified by the Librarian of Congress in June. While Congress has enacted laws to guide the CARP process, the result of this first webcasting CARP demonstrated some structural flaws in the process that Congress must remedy. "Small web radio stations are bearing an unfair burden under the CARP's decision, and the public stands to lose access to these useful services unless the law is changed," said Inslee.

Some highlights of the Internet Radio Fairness Act include:

Original Cosponsors:

  1. Jay Inslee
  2. George Nethercutt
  3. Rick Boucher
  4. Don Manzullo
  5. Jim Moran
  6. Patsy Mink
  7. Rick Larsen
  8. Dennis Kucinich
  9. Jerry Kleczka
  10. Jim Leach
  11. Zoe Loftgren
  12. Norm Dicks
  13. Corrine Brown
  14. Adam Smith