Thursday, July 10, 2003

Net Radio Group Threatens to Sue RIAA Small Internet radio stations, angered over what they say is the recording industry's effort to wield royalty rates as a weapon to drive them out of business, say they are preparing to file an antitrust suit against the Recording Industry Association of America. The Las Vegas-based Webcaster Alliance will send a letter today to the RIAA, threatening to sue the group for violations of the Sherman Antitrust Act unless the RIAA agrees to reopen negotiations over the royalty rates webcasters must fork over to artists and record labels, Webcaster Alliance attorney Perry Narancic said. "We're trying to negotiate with these people, but with a big stick," Narancic said. The existing royalty rates structure would force as many as 90 percent of small commercial Internet radio stations to close if left unchanged, Narancic said. The Webcaster Alliance has more than 300 members ranging from tiny hobbyists to small broadcast stations with accompanying Internet sites. The group's members include stations specializing in trance, bluegrass, classical and other genres.� http://www.washingtonpost.com/wp-dyn/articles/A31245-2003Jul9.html