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Written by Daniel   
Thursday, 08 March 2007 06:57
New Net radio rules draw fire on Capitol Hill
By Anne Broache
Staff Writer, CNET
Published: March 7, 2007, 4:01 PM PST
WASHINGTON--A key Democrat in the U.S. House of Representatives on Wednesday slammed new federal rules that would require many Internet radio services to pay higher fees to record companies.

Rep. Edward Markey (D-Mass.) had harsh words for a ruling released Tuesday by the U.S. Copyright Royalty Board. It proposes raising the amount that commercial Internet radio services pay to record companies by 30 percent retroactively to 2006 and in each of the next three years through 2009. Each station would have to hand over a minimum $500 royalty payment.

The pricing inquiries arose in part because Mel Karmazin, CEO of Sirius Satellite Radio, whose proposed merger with XM Satellite Radio is being scrutinized by House members, seemed to indicate at a House hearing last week that prices would never increase, even on the combined service.....

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