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BY KURT HANSON AND PAUL
MALONEY
Today, as the webcasting industry, and Rep.
Sensenbrenner's office, await word of a royalty deal
that at this moment record
industry and Internet radio negotiators are trying to hammer out,
a new wrench may have been tossed into the works. And this one doesn't
come from the RIAA.
Commercial broadcasters, sources say, did not take part in
the negotiations, but may use their weight in Congress to prevent
a webcaster/label accord from becoming law.
On Tuesday, House Judiciary Chairman James Sensenbrenner's
(R-WI) H.R. 5469, which would have granted a six-month  temporary
suspension of webcasting royalty payments, was removed from the
House voting schedule, following an outcry from House Democrats
and unions representing musicians (please see RAIN coverage
here).
In a meeting in his office, record industry and Net radio
negotiators told Sensenbrenner they could manage to craft a reasonable
deal by today. Sensenbrenner
promised he would try to introduce that deal to the House as legislation.
However, broadcasters (i.e.,
the NAB) aren't in on the
negotiations, and multiple reliable sources tell RAIN that
the NAB is telling its members that it will block
any agreement similar to the one being discussed from being passed
by the Senate.
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In fact, if the NAB were to bring its political might
to bear, it's possible that Sensenbrenner might not even be
able to get the agreement passed by the House.
On the other hand, before the developments of this week,
webcasters and the labels had discussed the idea of bringing
an agreement they reach to the U.S. Copyright Office, in the
hopes that it be made an addendum to the Librarian of Congress's
decision.
If the NAB blocks Sensenbrenner's plan, there's nothing
to prevent the parties involved from asking U.S. Register of
Copyrights Marybeth Peters
and Librarian of Congress Dr. James
Billington to add these new terms to the Librarian's
decision...or for the RIAA to offer the terms negotiated this
week to webcasters on a voluntary basis, as was the original
plan when the negotiations began. -- KH
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fees for Internet radio webcasters flushed
out the little guys and paved the way for big
media conglomerates. 
