Statements on Introduced Bills and Joint Resolutions

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS -- (Senate - May 10, 2007)

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By Mr. WYDEN (for himself and Mr. Brownback):

S. 1353. A bill to nullify the determinations of the Copyright Royalty Judges with respect to webcasting, to modify the basis for making such a determination, and for other purposes; to the Committee on the Judiciary.

Mr. WYDEN. Mr. President, today, I come back to the floor to introduce legislation to keep the Internet free of discrimination. For over a decade, people have tried to get their grubby hands all over the Internet and I have sprung into action to stop them. I have fought hard to prevent discrimination in the taxation of Internet commerce. I have fought hard to prevent discrimination on the content and applications layer of the Internet. Now, I am back here one more time, to prevent discriminatory treatment against Internet radio companies and consumers of their product in how copyright royalties are collected.

Make no bones about it, the recent decision on copyright royalty fees by the Copyright Royalty Board is discrimination. The fees that webcasters will have to pay will discriminate in favor of traditional radio broadcasting and satellite radio broadcasting, which pay a much lower percentage of their revenues in royalties.

The decision of the Copyright Royalty Board would increase royalties on webcasters to levels between 300 and 1200 percent of their current royalty fees. For most webcasters, the royalties will exceed their gross revenues. There are not many people who are going to stay in business long when their costs exceed their revenues. This is certainly the case for webcasters. That is why I am introducing the Internet Radio Equality Act today.

The Bipartisan Internet Radio Equality Act, that I am introducing today with my friend from Kansas, Senator Brownback, will prevent this discrimination. It does so by invalidating the decision of the Copyright Royalty Board and instead puts Internet radio on par with Satellite Radio, jukeboxes, and cable radio. Additionally, it has special protections in place for noncommercial webcasters, like National Public Radio and college radio, to ensure that they can take advantage of webcasting as well.

Unfortunately, time is of the essence in saving Internet radio. On July 15, if Congress does not intervene, collection of these new royalty fees will begin. It is no coincidence that on the same day, if Congress does not intervene, that hundreds of thousands of Internet radio stations will be turned off for good. It is imperative that we act within the next 2 months to prevent this from happening.

I want to thank my friend from Kansas, Senator Brownback, for joining me in introducing this important legislation. I look forward to working with him and Congressman Inslee, my friend from Washington, who has introduced companion legislation in the House, to get the job done.

I ask unanimous consent that the text of the bill be printed in the RECORD.

There being no objection, the text of the bill was ordered to be printed in the RECORD, as follows:

S. 1353

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