New Internet Legislation Will Not Exempt WXYC From Fees

The new legislation is intended to help small radio stations that faced going out of business Oct. 20, when the new rates are set to take effect.

The new agreement leaves out campus radio stations like WXYC from the legislation.

"The bill does not include college radio stations that simultaneously Web cast their analog radio broadcast," said Terry Shawn, press secretary for the U.S. House of Representatives Judiciary Committee.

"(College stations) can still broadcast over the air," he said. "Should they wish to simulcast, the fee is approximately $500 per year."

Campus stations like WXYC still will have to abide by a provision in the Digital Millennium Copyright Act of 1998.

The rates were set in June 2001, requiring noncommercial, licensed stations a .02 cent per song, per listener fee.

Internet-based radio stations and commercial radio stations are required to pay a .07 cent per song, per listener fee to broadcast online.

The new provisions, designed to help small business radio stations, use a percent of revenue from the station to determine royalty rates, said Paul Maloney, of Radio and Internet Newsletter.

The provision in the House bill addressed the new rates, stating, "the royalty rate shall be 8 percent of the Web caster's gross revenues ... or 5 percent of the Web caster's expenses, whichever is greater."

"It wouldn't make sense for a college broadcaster to take advantage of (the new regulations) because you would have to submit the university's revenue, which would be way too high," Maloney said.

WXYC station manager Jason Perlmutter said college radio stations are not being adequately represented in the negotiations. For small radio stations with limited manpower, it is difficult to follow the new restrictions, he said.

"The reporting requirements aren't too nice," Perlmutter said. "We have a lot of old records, and many don't have all of the information to fulfill all of the new requirements."

WXYC representatives are encouraging people to petition their congressmen, which they hope will spur some change. "We're weighing our options for more active steps," Perlmutter said.

Rep. F. James Sensenbrenner, R-Wisc., previously proposed a bill that would have put a six month delay on royalty payments radio stations must pay for broadcasting songs over the Internet.

On Oct. 1, Sensenbrenner pulled the bill, H.R. 5469, from consideration by the request of "interested parties."

The University Editor can be reached at udesk@unc.edu.