Radio Royalties Requirement Stands

TECHNOLOGY

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The U.S. Copyright Office refused to suspend the requirement that over-the-air radio stations pay royalties to labels and artists for the songs they broadcast over the Internet. As a consequence, stations that simulcast on the Web will have to pay four years’ worth of back royalties Oct. 20.

The National Assn. of Broadcasters and seven major radio chains have challenged the royalties requirement in court, and they sought the suspension because their appeal still is pending. But the Copyright Office ruled that the broadcasters were unlikely to win their appeal or suffer irreparable harm if they paid the royalties, which amount to $92 per listener per year for all-music stations.

The House of Representatives passed a bill Monday to cut the royalties owed by small companies that broadcast music on the Net, but none of the seven chains is likely to qualify for that relief. The bill is pending in the Senate.