House to Vote on CARP Royalty Reprieve

Internet webcasters facing massive copyright royalty fees could get a
six-month reprieve if a bill introduced by House Judiciary Committee
chairman James Sensenbrenner gets approval from Congress.

Sensenbrenner introduced the bill late on Thursday, seeking a six-month
delay to the October deadline for royalty
payments owed by webcasters.

Sensenbrenner is pushing for a vote on the bill as early as next week,
warning that many small businesses will go out of business if the October
deadline is enforced.

“I have introduced H.R.5469, a bill to help webcasters (Internet radio
broadcasters) remain in business while they are resolving a commercial
dispute with record companies. If my bill is not enacted prior to October
20, these small-business will be forced to shut down – even though their
case is still on appeal,” Rep. Sensenbrenner said.

A spokesman for the Judiciary Committee said a vote is expected as early as
Tuesday next week because of the special circumstances surrounding the appeal to the
CARP ruling, which is still before the courts.

If Rep. Sensenbrenner’s bill is approved, it will also give webcasters more
time to negotiate a settlement with the Recording Industry Association of
America (RIAA).

Sources tell internetnews.com the two sides are “not far away from a
very fair deal” that will protect smaller webcasters from paying monumental
retroactive royalty payments. “That’s why this bill is so crucial. If a
moratorium is placed before the October 20 deadline, it will give us time to
work out a settlement,” the source, who is familiar with the negotiations,
said.

Briefs have already been filed with the U.S. Court of Appeals for the D.C.
Circuit to appeal the Library of Congress’ acceptance of the CARP
recommendation for a per-performance royalty fee of 0.07 cents.

Rep. Sensenbrenner said his bill solves the problem of webcasters paying
fees while an appeal is still to work out the issue.

“Since the Librarian’s decision is slated to take effect on October 20, and
the Court of Appeals has yet to set a trial schedule, the webcasting
industry that Congress sought to nurture in 1998 may become extinct before
the litigation officially ends. H.R. 5469 solves this problem by staying the
implementation of the decision for six months, providing both sides the
opportunity to have their day in court,” he said.

“It is only fair that private parties be allowed to pursue all legal
remedies available to them before judgment is imposed,” the House Judiciary
chairman added.