Pandora and slacker fans, watch out. Another case of the entertainment industry not getting it.
A commentary, but it brings up some good points...
SAN FRANCISCO (MarketWatch) -- The dysfunctional music industry suffers from a classic case of biting the hand that feeds it.
Over the last two years, record companies have tried to squeeze excessive royalties from Internet-radio stations -- the very stations that can help fuel future digital-music sales -- and it's endangering some Web-based radio firms.
The issue will be in the spotlight later this month, when a federal court in Washington, D.C., hears oral arguments over an appeal filed by an industry association representing Webcasting companies like Pandora and Live365.
These companies are fighting a ruling by the Copyright Royalty Board, part of the Library of Congress. In May 2007, this ad hoc group imposed a sharp increase in performance-royalty rates these stations now pay the recording industry.
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