I am a big fan of internet radio. I started listening to the now defunct GameDogRadio during my Horizons MMO days (Ferguz, level 100 Spirit Disciple here). Currently, when I play "Neverwinter Nights 2" or "Oblivion", I typically listen to MMORadio or DnDRadio - both excellent streaming destinations!
So, I am understandable upset by this recent article from the WIRED website. To summarize the article, the US Copyright Board (CRB), with prodding from SoundExchange (the RIAA's royalty collecting division), will now require webcasters to pay royalties per song per listener. These royalties will start retroactively from 2006 and increase each year through 2010. There are more details in the official CRB press release (pdf) and in the WIRED article linked above.
SoundExchange has issued a very condescending press release supporting the ruling, which can be found here (also a pdf). To me, the press release basically says, "We're in charge and you're screwed...and, you should like it."
So, why am I so against the ruling? First, the royalties are retroactive to last year. That is simply wrong. But, even disregarding that blatant outrage, the fee schedule is ridiculously high. The station that I listen to (MMORadio) has a calculation here which shows that they would be paying approximately $5000/month to webcast to 500 listeners. I think everyone knows that 500 listeners do not provide $5000 worth of click revenue. So, in essence, the ruling forces any small volume webcaster to close their sites.
So, what can we do? SaveNetRadio.org has a petition drive and a form to help you contact your congressional representatives. Please contact your representative and let them know that you do not support this ruling. Thanks!