The deal establishes a two-tier royalty payment system for companies -- such as the popular service offered by Pandora Media Inc -- that broadcast music over the Internet.

The agreement calls for large webcasters to pay artists and copyright owners a percentage of all U.S. revenue up to 25 percent or on a per-song basis, which ever is greater. Smaller webcasters -- with revenue of less than $1.25 million -- will pay a smaller percentage under a different formula. - more on this story

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