Pandora and Clear Channel are founding members of a coalition of companies that will campaign for legislation lowering the rates online radio pays for the performance of sound recordings.
The two companies are joined by a number of companies, trade associations and advocacy groups in the formation of the Internet Radio Fairness Coalition, which will lobby for the Internet Radio Fairness Act 2012.
The legislation seeks to change the way in which the Copyright Royalty Board sets its rates, thus lowering webcaster royalty payments.
The system proposed by the group and legislation would allow rates to be set with public interest, return earned by rights holders, minimisation of risk and the interplay between creative contribution and capital investment all taken into account.
Contrastingly, record labels are in support of a separate bill which proposes bringing satellite and cable radio rates up to the level of webcasters.
Billboard sources say that a Congressional hearing on the matter is scheduled for late November or early December.
"We believe that market-based solutions are the way to go," said Bob Pittman, CEO of Clear Channel. "But in the absence of these agreements, the CRB needs to have and consider more relevant information so they are better able to develop a rate structure that will lead to a healthy, sustainable Internet radio marketplace."
Source: Pandora
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