SOURCE: Live365

May 02, 2007 11:22 ET

MEDIA ALERT: Live365 CEO Mark Lam Available for Comment on Newly Modified CRB Ruling to "Stay the Execution" of Internet Radio Until July 15

WASHINGTON, DC -- (MARKET WIRE) -- May 2, 2007 --


Who: N. Mark Lam, CEO, and Johnie Floater, GM, Media, Live365, will be available for comment on the May 1 publication in the Federal Register of the final determination of the rates and terms by the Copyright Royalty Board (CRB) that changes the due date for initial payments under the CRB decision, including annual minimum fees, to July 15, 2007. This topic -- the CRB's determination of the new rates which increases the royalties roughly two and a half times from 2005 to 2010 and the requirement that each station, rather than each licensee, pay a minimum fee of $500 -- has been the subject of more than one million Internet posts in the past week and much public debate. This ruling will put the royalty rate for Internet radio, including many thousands of small webcasters, at rates far higher than either traditional or satellite radio.

What: The publication of the final determination yesterday only pushes back the due date from May 15 to July 15 the retroactive portions of new royalties for 2006 and 2007. Lam stressed that it is only a temporary reprieve and a first step in the fight for royalty equality across platforms for Live365 and thousands of its broadcasters. The new rates and terms set by the CRB published yesterday still will kill internet radio. Live365 provides an inexpensive, effective, and stable platform (as little as $10 per month) for anyone who wants to broadcast -- whether music or talk -- to have a voice on the web. The language of the CRB's final determination of rates and terms in the Federal Register yesterday gives Congress more time to pass the Internet Radio Equality Act (H.R. 2060).

The key to overturning the CRB decision is passage of the Internet Radio Equality Act (H.R. 2060). This legislation, introduced last Thursday, will ensure the future of Internet radio's existence by giving it equal footing with satellite radio in paying performance royalties of 7.5% (traditional radio does NOT pay performance royalties). Live365 and many of its broadcasters participated in a "SaveNetRadio Hill Walk" and garnered many new co-sponsors for the Radio Equality Act. This show of support for Internet radio is critical for the survival of the Internet radio industry. Lam was quoted by AP two weeks ago as saying that under the new royalty rules, "there is no industry."

When: Lam and Floater will be participating in the Future of Music conference today, where policy makers and music industry executives will debate this decision. Lam will be available for interviews throughout this event.

Where: The conference is being held at the Economic Policy Institute, 1333 H Street NW, Washington, D.C.

To set up in-person or telephone interviews with Lam or other Live365 executives or artists, please contact Elina Heng at 310-821-6100 x108, elina@terpin.com.

On-site contact is Amy Orebaugh, 201-919-1344, amy@terpin.com.

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