] adio stations must pay royalties to recording companies
] and performers, as they do to composers and songwriters,
] when musical broadcasts are "streamed" over the Internet,
] a federal appeals court has affirmed.

At Phreaknic JonnyX did a talk on how to do independent radio broadcasting. I asked him if the internet was a viable option, and he referenced this recent decision. He basically said this was the nail in the coffin all hope was lost.

Hrm.... This is interesting. Previously it was felt that (and the law literally says that) traditional radio stations that simulcast over the internet did not have to pay the RIAA royalties that people running webcast only stations have to pay. The courts have undone that interpretation. Its an example of how laws mean what they mean and not what they say. Laws are not like code.

However, as this is an issue for traditional broadcasters, and not something that impacts webcast only transmissions, I really don't think it impacts the question I posed. However, it does mean that even more internet radio is going to go away. In particular, college radio stations are probably going off the air because of this. I wonder if any have already...

It probably makes sense for everyone to pay the same royalties. Furthermore, I don't even mind if a royalty structure exists. The critical question is: can a few hobbyists set up a viable internet radio show and make the payments... Can they still make payments as the popularity of their station scales? If the answer is no, then these royalties aren't a way to pay artists, they are a way to stifle innovation. So far I have to say that it feels like the later.