Broadcasters Sue Over Web Radio Fees

CBS Corp.’s Infinity Broadcasting Corp. and other radio station owners sued to overturn a U.S. Copyright Office ruling that requires thousands of broadcasters using the Web to pay fees for playing music.

The broadcasters sued Thursday in U.S. District Court in Philadelphia to overturn the decision that record companies are entitled to royalties when a station transmits music programming on a Web site. An arbitration panel will set the exact amount.

At stake is millions of dollars in fees to companies such as Bertelsmann’s Arista Records and Vivendi’s Universal Music Group as they protect their $40-billion business worldwide. Radio stations dispute having to pay for their Web programming, citing exemptions for over-the-air broadcasts.

The decision by the Copyright Office, part of the Library of Congress, “could profoundly affect the ability of the radio industry to keep abreast of modern technology . . . and stifle the offer of streamed over-the-air radio broadcast programming over the Internet,” the lawsuit said.

The National Assn. of Broadcasters joined Infinity, Cox Communications Inc. and others in the lawsuit challenging the legality of the rule. The association in March filed a separate suit in federal court in New York before the rule was issued in December.