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08/12/2002 Archived Entry: "Radio Freedom Threatened on Internet"

From Harry Browne's newsletter
Subject: Final Internet radio transmission

Because of disputes over copyrighted music used in radio shows broadcast on the Internet, sometime this month most radio networks will stop transmitting over the Internet.

Radio America, which carries my show, will cease Internet transmission on August 15 -- which means this Sunday's show (August 11) will be my last time live on the Internet.

Radio America is exploring other ways of handling Internet transmission, and hopes to be able to resume such cybercasting. Something may be worked out soon or it may be months before we have live Internet shows again.

**

I find no information of the front page of Radio America but the organization Save Internet Radio is a fount. The site states, "Most Internet radio stations are at risk of bankruptcy because of a Congressionally-imposed royalty they will be required to pay to record labels. (You may have heard this called a "CARP" royalty, named for the U.S. Copyright Office arbitration panel that held hearings on what the rate should be.)"

RAIN, a daily Radio and Internet Newsletter, speaks of the motive behind the royalty being "revealed in an e-mail" to RAIN. To wit, "the deal was specifically crafted by Yahoo! to shut out small webcasters and decrease competition. Specifically, he wanted a "per stream" (as opposed to a "percentage of revenue" rate), since smaller webcasters would most likely not be able to afford to compete in that structure. The thinking was that smaller webcasters, who would be unable to afford to webcast on their own under such terms
(because of the fixed rates), would be compelled to use the services of well-funded aggregators like the Yahoo! Broadcast service. See our full coverage of this story here." Interesting, if true.

BTW, the best blog/guy I know of on Intellectual Property issues is Stephan Kinsella.

mac