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From their press release: "U.S. Reps. Jay Inslee and Rick Boucher reacted to this evening's determination by the Librarian of Congress to cut in half royalty fees charged to webcasters. Inslee and Boucher are also considering legislative action that would more effectively ensure fair payment to music creators while continuing to maintain a diverse, innovative Internet medium for music broadcasting.

"Following the Librarian's decision, Inslee and Boucher made the following statement:

"'We are moderately encouraged that the Librarian of Congress reduced the rates for Internet-only webcasters to the same level AM/FM radio Internet broadcasters. We remain very concerned, however, that this rate will lead to the elimination of hundreds of small businesses and does not provide a viable model to serve both the Internet radio industry and recording artists.

"'Unfortunately, these rates are a direct result of the flawed "willing-buyer/willing-seller" standard that Congress mandated the Librarian of Congress use in determining these rates. Instead of assessing a fair rate, the flawed standard instead requires the arbitrators to try to replicate willing buyers and willing sellers in an already flawed marketplace.

"'While the Librarian of Congress clearly went to great lengths to change the burdensome Copyright Arbitration Royalty Panel (CARP) ruling, we believe that such a contorted process and poor outcome can be avoided by changing the standard guiding the Librarian's decision-making and removing other obstacles in current copyright law that were identified by the Librarian.

"We will be considering legislation to change the standard from "willing-buyer/willing-seller" for Internet radio to the traditional fair market formula used by other CARPs. In addition, we want to ensure that all future Carps must take into consideration small business concerns and allow effective participation of small, niche and noncommercial entities. We believe these standards will allow for the development of a viable Internet radio industry and ensure that artists, writers, and record labels are fairly compensated.'

"The 'willing-buyer/willing-seller' standard requires that the CARP establish royalty rates for Internet radio based on market transactions between the record labels and the Internet broadcasters. There has only been one such transaction in the marketplace since the law was passed, and that contract was terminated prematurely by the webcaster. Therefore, the CARP did not have enough information on viable contracts from which to make a rate determination."

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