CNET reports that the Webcaster Settlement Act has passed the House of Representatives unanimously. Only the Senate now stands in the way of internet radio broadcasters and business viability.
According to the article:
Webcasters are fighting for the right to negotiate with the music industry to reduce the royalty rates they must pay to stream music over the Web. Any deal must be approved by the federal government.
It’s sad that it’s even gotten to this point. The revised royalty rates from last year that put webcasters into this situation in the first place were completely unreasonable. Now they are fighting for the right to negotiate? With the music industry?
Granted, one would assume that the record labels themselves would see the futility in forcing internet radio out of business and would negotiate reasonable deals if the bill passes. However, why did they allow SoundExchange to enact such ridiculous rates in the first place? The fact that any deal must be approved by the federal goverment adds unnecessary red tape to the process.
Unanimously passing the House is a good first step; it appears as though the bill will get enacted. At the end of the day, though, it’s still a workable solution. Just not a very elegant one.