Senate puts Webcasting bill on hold

The bill still can be taken up in November after the Senate reconvenes, providing some measure of hope to Webcasters. However, as the law stands today, all Internet radio companies will be required beginning Sunday to pay royalty fees amounting to about one-fourteenth of a cent per song streamed to each individual person. The fees are retroactive to 1998, which means that huge bills will be presented to some popular stations.

The record industry trade association had argued consistently that the rate, set by the Copyright Office and the Librarian of Congress, was too low. However, the group had agreed in the course of the bill's negotiations to let small businesses pay between 8 percent and 12 percent of revenue instead of the flat fee.