New rules
The new Internet royalty rates, which will take effect May 15, charges webcasters for each “performance” of a song—per time played, per listener—rather than a flat fee.
Under the old system, Radio Paradise paid $30,000 in royalties in 2005 and $40,000 in 2006. With the new rates, the station will have to pay about $500,000 more for 2006. Based on the rates set for 2010, the station would owe $1,263,960.
| Year | Royalty rate |
|---|---|
| 2005 | 10 percent of gross revenue (stations making less than $250,000) 12 percent of gross revenue (stations making more than $250,000) |
| 2006 | $.0008 per performance* |
| 2007 | $.0011 per performance |
| 2008 | $.0014 per performance |
| 2009 | $.0018 per performance |
| 2010 | $.0019 per performance |
* must be paid retroactively
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