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A federal appeals court Wednesday rejected a plea by Internet broadcasters to prevent new royalties set to begin July 15, charges that Webcasters believe could silence them. The order by the U.S. Court of Appeals for the District of Columbia noted Webcasters "have not satisfied the stringent standards required for a stay pending court review," according to News.com.

In a March ruling, the U.S. Copyright Royalty Board said Webcasters raised the current $.0012 fee Internet broadcasters must pay per stream to $.0008 for 2006, $.0011 for 2007, $.0014 for 2008, $.0018 for 2009 and $.0019 for 2010.

Jonathan Potter, executive director of the Digital Media Association, which represents large Internet radio stations including Yahoo, RealNetworks, Live365 and Pandora, said the court loss would force Webcasters "to make very difficult decisions about what music, if any, they are able to offer," according to the report.

Potter still holds out a possible compromise from SoundExchange, the organization collecting royalty fees. Two previous attempts, including capping the fees and freezing royalties at 1998 levels, failed.

Washington could also intervene and either set aside the Royalty Boar's ruling or cap total royalties at a percentage of their revenue.


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