Internet radio receives stay on rate hike

NEW YORK, July 14 (UPI) -- The U.S. recording industry has granted a stay to Internet radio programmers who fear a hike in royalty payments will put them out of business.

After pressure from Congress and online listeners, industry representatives said they might not demand all the payments called for under the new royalty program set to take effect Sunday, The New York Times reported Saturday.

Internet stations were paying 0.0762 cents per play of each song, and small Webcasters, who generate little or no advertising, were charged based on a percentage of their revenue.

The new rate system, established by the federal Copyright Royalty Board, called for the rate per play to more than double by 2010 and required a separate fee of $500 a station, The Times reported. Royalty payments would be retroactive from January.

Sound Exchange, an industry-backed group that collects royalties for record labels and artists, said Saturday it would work to reduce fees if Webcasters provide more data about songs they play and prevent listeners from using their computers to copy or store the radio streams, The Times reported.