Online radio stations just received good news from the most unexpected source, the US government. Yesterday (5-21) The United States Copyright Office rejected an arbitration panel ruling on online broadcasting royalty fees that would have killed many online radio stations. 

The Librarian of Congress Posted a notice on its website stating that the proposed royalty rate of 14/100 of a cent per performance recommended by the Copyright Arbitration Royalty Panel had been rejected. "The Register of Copyrights recommends, and the Librarian agrees, that the CARP's determination must be rejected. A final decision will be issued no later than June 20, 2002," reads the notice from the Copyright Office. 

"In accordance with 17 U.S.C. 802(f), the Librarian is given 90 days from date of delivery of a CARP report to review the determination and issue a decision setting forth the final royalty fee and terms of payment.  However, if the Librarian rejects the CARP's determination, section 802(f) provides an additional 30 days for the Librarian to render his final determination."

This decision comes as good news to online music fans and webcasters. If enacted the CARP proposed royalty rates would have retroactively been levied against online broadcasters, forcing many into bankruptcy. Suffering from a deeply depressed online advertising market already, the CARP proposal would have made webcasting almost impossible for many current independent online radio broadcasters. 

The RIAA was quick to respond and warn that the decision isn�t final. "The Librarian has rejected the arbitration panel's determination, but we do not know why or what decision the Librarian will ultimately make based on the evidence presented," said RIAA president Cary Sherman. "Since both sides appealed the panel's determination, anything is possible. We look forward to the conclusion of this process on June 20th, and to the day when artists and labels finally get paid for the use of their music." 

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