SoundExchange, the group that collects royalties from small radio stations on behalf of record labels and artists, has offered small Internet radio broadcasters a temporary reprieve from the royalty fee increases.
The group says online radio companies earning less than $1.25 million could pay royalites of 10 to 12 percent of annual reveneue if they sign up for it before September 14. The deal will last through 2010.
The potential agreement is comprehensive in that SoundExchange represents over 20,000 artists and 3,500 labels, with all major recording companies under their umbrella.
This should be good for the smaller companies who have feared going out of business under the new structure which was put in place by three copyright judges earlier in the year.
When you consider SoundExchange is also working hard with larger companies to work out the problem, it seems to me these judges should have just left the situation alone.
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