Online Webcasters go silent to protest higher music royalties

NEW YORK — Dozens of online music broadcasters will go silent on Tuesday to protest a new set of royalty rates that many smaller companies say would put them out of business.

Viacom Inc.'s MTV, Live365, Pandora, AccuRadio and several public radio stations including KCRW in Los Angeles and others will observe the day of silence and encourage listeners to support a bill in Congress that would roll back the new rates. The stoppage applies to ad-supported music streams, not to paid subscription ones.

The new royalties were decided by a panel of three copyright judges in early May, and the first payments are due on July 15. Unlike previous arrangements, which expired in late 2005, no breaks were given to smaller online-only broadcasters as they build their businesses.

The royalties are paid to SoundExchange, a music industry group that distributes the payments to artists and recording labels. Richard Ades, a spokesman for SoundExchange, called the Webcasters' day of silence protest a "moot point" because his group was already in "active negotiations" with smaller Webcasters and has also made offers to non-commercial stations.

"Cutting off the streams of music demonstrates what happens when there's no music," Ades said. "If artists aren't paid for their music, there will be no music."