scopius writes: As reported this morning in The Wall Street Journal, the RIAA is now pushing Congress to hike royalty rates for Internet Radio. Tim Westergreen, co-founder of Pandora.com, claims that this action will shut down Pandora, along with many other internet radio stations. The rates set by the board are
.08 cents per song per listener, and this rate is in addition to royalties already paid to the songwriters of the works. Up until this point, these stations had been paying a flat fee, but these new rates will be much larger than revenues for most stations. One interesting point is that normal radio doesn't have to pay anything like this rate, they only pay the songwriters royalties, according to the article.