SaveNetRadio.orgU.S. Representative Jay Inslee (D-Wash) is one of the sponsors of the Internet Radio Equality Act that has been introduced to the House and Senate. The bill would reverse the March 2, 2007 decision of the federal Copyright Royalty Board (CRB) that nearly brought down internet radio on July 15, 2007, the now softened deadline for web-based radio stations to pay retroactive royalty rates that are a 100% increase or more over previous rates. The CRB decision would also impose a minimum $500 per channel fee for each web station, which alone could bankrupt larger internet radio stations that offer customized channels for listeners. According to Inslee’s website, Nielsen Media Research estimates that “70 million Americans listen to online radio each month.”

If you’re one of the 70 million listeners, keep reading to find out how you can still save internet radio. If you’re not familiar with internet radio, check out some of the music streams on KCRW or SomaFM and see what you’ve been missing. Or, if you’ve been wondering what that radio button is all about on the upper-left side of iTunes, take some time to explore the stations under your favorite genre. I guarantee you won’t be disappointed with the incredible variety of music you’ll find, that is, if the station still exists.

Some smaller internet radio stations have already shut down in response to the July 15 deadline to pay retroactive royalty rates reaching back to the beginning of 2006. But, as Clea Simon at the Boston Globe explains, “thanks to last-minute negotiations between webcasters and SoundExchange, the nonprofit corporation that collects royalties for artists and record labels, the anticipated Web silence expected to follow the July 15 rate changes has been at least postponed.”

CNNMoney reports that negotiation terms for smaller web stations “with less than $1.2 million in annual revenues – would bring back the fees to the level prior to the March decision that raised them.” As for the larger stations which are greatly impacted by the per channel fee, Wired News explains, “Under the new proposal, which must be implemented by the CRB, SoundExchange would cap the $500 annual per-channel minimum fee at $50,000 per year for webcasters. In exchange, webcasters could be required to provide more detailed data on the music that they play and make an effort to stop unauthorized copying from streamrippers — software that can turn ephemeral net radio streams into permanent recordings.”

On the surface, internet radio appears to be safe from extinction if an agreement is reached. However, if you take a look SaveNetRadio.org, you can follow up with all the breaking news regarding royalty negotiations. As of July 18, SoundExchange and internet radio representatives were no closer to settling their differences.

The best hope in my opinion is to support the Inslee-Manzullo Internet Radio Equality Act, which “would provide royalty parity for Internet radio providers… [with] the same royalty rate-setting standard to commercial Internet radio, as well as satellite radio, cable radio and jukeboxes,” as Inslee’s website explains.

Parity makes sense to me. The CRB’s rationale for imposing such high royalty rates is based on the idea that their solution recoups revenue lost from internet radio listeners who “rip” radio streams and turn them into more permanent music libraries. The CRB’s royalty structure works if the assumption is true that internet radio is more vulnerable to ripping than other mediums for music broadcast. However, the reality is that listeners can copy music just as easily from any (and more widely-listened) medium. Why then should internet radio be punished more? That’s what doesn’t make sense, and the Internet Radio Equality Act addresses the poor reasoning of the CRM.

To find out how you can contact your local senators and representatives and encourage them to pass the Internet Radio Equality Act and save internet radio, check out the SaveNetRadio.org page that directs you to contact information for your elected officials. It’s important for the recording industry, artists and listeners to come to a deal that will satisfy all parties. The Internet Radio Equality Act might not please everyone, but it’s a solution that will keep one of the great cultural and frugal treasures available on the internet alive and well.