Court Upholds Ruling on Webcast Royalties

Law360, New York (October 22, 2003, 12:00 AM EDT) -- A federal appeals court has refused to overturn a rule passed by the U.S. Copyright Office that says radio stations must pay royalties to recording companies and composers when their broadcasts are simultaneously streamed over the internet.

In a unanimous ruling, the three-judge panel of the Third U.S. Circuit Court of Appeals found that the rule was correct because Congress intended for a royalty exemption to apply only to "traditional, over-the-air broadcasts."

Traditional radio broadcasts have been exempted from royalty payments because they have served to...
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