Appeals of Order setting royalty rates for webcasting

The Center for Internet and Society is representing Collegiate Broadcasters, Inc. (CBI) in connection with the Copyright Office's determination of royalty rates for the compulsory license for webcasting copyrighted music. These rates were set for the first time this year by a panel of arbitrators appointed by the Copyright Office, as approved and modified by the Librarian of Congress. CBI, which represents about 100 broadcasters affiliated with educational institutions, was not able to participate in the expensive royalty arbitration. Many Internet radio stations have protested that the rates, which are based almost entirely on a single agreement between the Recording Industry Association of America and Yahoo!, are so unreasonably high that they will put most Internet radio stations out of business. The Librarian's decision has been appealed to the D.C. Circuit Court of Appeals by various parties. CIS worked with counsel for other aggrieved parties to seek a stay of collection of royalties for 1998-2002 pending the outcome of the appeals. Currently, CBI has a motion for stay pending in the D.C. Circuit (filed in late October, 2002). CBI argues that the stay is necessary because the appeals are likely succeed in vacating the rate determination, but meanwhile college radio stations are suffering irreparable harm from the Librarian's order.