Net radio rules raise ire on Capitol Hill

David Johnson March 8th, 2007

Rep. Dennis Markey (D - Mass), who chairs the House panel on telecommunications and the Internet, blasted new federal rules that will force Internet broadcasters to pay higher fees to record companies. Markey said, “This represents a body blow to many nascent Internet radio broadcasters and further exacerbates the marketplace imbalance between what different industries pay.” The rules of the U.S. Copyright Royalty Board, which were passed Tuesday, are subject to appeal. RealNetworks general counsel Robert Kimball suggested the proposed merger between XM and Sirius should be put on hold until Congress “corrects the Copyright Act’s bias against the Internet,” thereby allowing Internet radio companies to compete more fully with satellite firms.