Web radio pioneer goes the way of Napster

Royalty row threatens mass closures...

By Pia Heikkila, 25 July 2002 16:27

NEWS The first ever web radio station is to shut down because of royalty disputes. The California-based KPIG station has stopped broadcasting because of the internet radio royalty scheme which forces web broadcasters to pay 0.07 cents per song played to the copyright owner. The scheme was set up by the Royalty Panel, a department of US copyright office, which is now supervising the online radio stations. Soon all internet radio stations will also have to pay royalties for music played over the last three years, which could cause the closure of many more stations.

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