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Sources say bill to suspend webcasting royalty fees pulled after parties agree to reach an accord by Friday.

BY: Paul Maloney

RAIN has learned that the proposed measure to temporarily relieve webcasters of their royalty obligations, scheduled for a House vote today, has been pulled from the schedule.

Sources say that a marathon negotiating session between the record industry and webcasters over the past 24 hours failed to produce a settlement between the parties. Those involved were advised that they could subject the bill to a vote today, or go back to the table to reach an agreement on royalties by this Friday.

Though the terms being discussed are private, RAIN understands that they do in fact involved a deal based on a percentage of webcasters' revenues. The terms of an agreement reached on Friday would be accepted by Congress as law for the industries. This law would thus override the Librarian of Congress's original determination for webcasting royalties, and eliminate the need for the next scheduled arbitration (CARP).

A spokesman for the House Judiciary Committee (which HR 5469's sponsor, Rep. James Sensenbrenner (R-WI, pictured), chairs) confirmed that the bill was pulled from the voting schedule, and said an official statement would be made later this afternoon.

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