Laws Of .com

Web Radio Royalty Fees Upheld

On October 13, 2003, the U.S. Court of Appeals (3rd Cir.) ruled that radio stations must pay copyright fees to sound-recording owners in respect of songs they play over the Internet.

The National Association of Broadcasters and other appellants in this case argued that the copyright laws providing for payment of royalties to sound-recording owners only applied to Internet downloading services and not to online radio-style broadcasts. Their argument was based on the fact that radio station owners do not have to pay royalties to performers for their regular broadcasts, and that the copyright law was not intended to impose more onerous obligations with respect to online broadcasts.

The Appeals Court refused to accept this interpretation based on the legislation itself and the congressional record.

For a copy of the case, visit:

http://www.ca3.uscourts.gov/opinarch/013720p.pdf