Court: Royalties Must Be Paid for Web Music

In a blow to Internet “simulcasting,” the 3rd District Court of Appeals has ruled that over-the-air broadcasters must pay royalties to recording artists and labels for the songs they play over the Internet.

The appeals panel’s opinion, issued Friday, upheld earlier rulings by a federal judge in Philadelphia and the U.S. Copyright Office.

Several leading broadcasters struck a royalties deal with the record labels earlier this year that calls for them to pay about 0.07 cent per listener for each song played. Nevertheless, National Assn. of Broadcasters spokesman Dennis Wharton said the trade group disagreed with the appeals court’s ruling and “will be exploring all of our legal and legislative options to overturn this decision, which we believe misinterprets the intent of Congress.”

-- Jon Healey