Congress Balks as Internet Radio Talks Stagnate

SoundExchange Entrenches Position as IREA Faces Music

First-time webcasting fees proposed by recording industry royalty-administration group SoundExchange took effect last month, setting off a wave of protests and last-minute negotiations aimed at reducing the hit for smaller webcasters and capping rates for sites that support hundreds of customized stations.

Negotiations are ongoing, but chances of broad legislative relief in the form of the Internet Radio Equality Act, or IREA, are fading fast, according to several people familiar with the effort. Rather, Congress appears resolved to let SoundExchange and the various strata of webcasters negotiate individual settlements.