CONGRESSMEN BOUCHER and INSLEE WEIGH ACTION
TO HELP SAVE INTERNET RADIO

JUNE 20, 2002
U.S. Reps. Jay Inslee and Rick Boucher stated this evening that they are considering legislative action that would more effectively ensure fair payment to music creators while continuing to maintain a diverse, innovative Internet medium for music broadcasting.

Inslee and Boucher made the following statement:

"We are moderately encouraged that the Librarian of Congress reduced the rates for Internet-only webcasters to the same level AM/FM radio Internet broadcasters. We remain very concerned, however, that this rate will lead to the elimination of hundreds of small businesses and does not provide a viable model to serve both the Internet radio industry and recording artists."

"Unfortunately, these rates are a direct result of the flawed "willing-buyer/willing-seller" standard that Congress mandated the Librarian of Congress use in determining these rates. Instead of assessing a fair rate, the flawed standard instead requires the arbitrators to try to replicate willing buyers and willing sellers in an already flawed marketplace."

"We will be considering legislation to change the standard from "willing-buyer/willing-seller" for Internet radio to the traditional fair market formula used by other CARPs. In addition, we want to ensure that all future Carps must take into consideration small business concerns and allow effective participation of small, niche and noncommercial entities. We believe these standards will allow for the development of a viable Internet radio industry and ensure that artists, writers, and record labels are fairly compensated."