Internet Radio lives - SoundExchange will not enforce new royalty rates

New royalty rates affecting online radio stations are set to take effect Sunday. But SoundExchange, the group responsible for collecting those royalties now says it will not enforce the new rates.

The news came out of a Congressional hearing on Thursday, and follows months of heated discussions. Webcasters say the new rates are high enough to put almost every internet radio station out of business. A coalition of webcasters held a day of silence protest last month, and Congress is considering legislation that would change the way rates are calculated.

SoundExchange says it will not enforce the new fees until a new agreement can be reached that would let stations like Pandora, Last.fm, and Radio Paradise remain on the air.

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