We once feared that internet radio services and those online radio applications on the App Store may just disappear because of the exorbitant royalty rate demanded by performers and copyright owners. Moreover, we also fear that the Webcaster Settlement Act that reserves Webcasters the right of negotiating royalty rate with Record Industry’s SoundExchange may not be passed due to the more burning bailout issue. The US Senate passed the (Bill number HR 7084) Webcaster Settlement Act without much hesitation to our relief.

Tim Westergren’s strategy of shooting e-mails to bloggers and appealing to Pandora listeners to contact their respective congressmen to vote for the Webcaster Settlement Act saved the day. All web radio broadcasters are safe from consciously going bankrupt through 2015.

Here is part of the Thank You Note from Jonathan Potter, Executive Director of Digital Media Association:

On behalf of DiMA and our Internet radio members, I want to thank Congress for acting quickly to pass the Webcaster Settlement Act. This legislation will enable DiMA and our member companies, and all Internet radio services, to continue negotiating royalty rates with SoundExchange for the years 2006-2015. We are very hopeful of reaching agreement soon, and thereby creating long-term stability that will re-energize the Internet radio business.