The bipartisan bill will allow copyright owners and artists, on behalf of SoundExchange, to negotiate with Internet radio services. The bill is expected to benefit all Webcasters, including National Public Radio, small Webcasters, and college Webcasters, who put their stations on the Internet.

The House passed the bill Sunday.

"This really is a bipartisan effort to find a resolution to a difficult issue, and there is a wide divergence on the right royalty to pay," said Rep. Jay Inslee (D-Wash.).

SoundExchange, the Digital Media Association, National Public Radio, and the Record Industry Association of America have been negotiating alternative royalty rates since the Copyright Royalty Board, the group that determines royalty rates for Internet radio services, set a royalty rate in March 2007.

"On behalf of DiMA and our Internet radio members, I want to thank Congress for acting quickly to pass the Webcaster Settlement Act," said Jonathan Potter, executive director at DiMA. "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 an agreement soon and thereby creating long-term stability that will re-energize the Internet radio business," Potter added.

A Part of Daily Life

Negotiations have been ongoing for several weeks. Once the bill is enacted, negotiations between the different parties will continue, according to SoundExchange.

Inslee recently spoke for the bill, saying Webcasting has become a piece of Internet users' daily lives.

"This is really why our constituents love this service ," Inslee said. "We want to find a business model where Webcasting can thrive, where consumers can listen, and at some point to rescue broadcasters who will be able to simulcast. Under this legislation they will be able to access the benefit of this legislation and will be involved in the negotiations to find a right appropriate level."

Letter Seeks Support

Just two weeks before the House and Senate passed the bill, more than one dozen Webcasters signed a letter asking Reps. John Conyers( D-Mich.), chairman of the House Judiciary Committee, and Patrick Leahy (D-Vt.) to support diversity on the Internet.

"We need Internet radio," said the the letter. "Internet radio is a beacon for 'non-mainstream' music; in fact, 37 percent of music broadcast on the Internet is from independent artists and labels, as opposed to five percent on traditional broadcast radio."

Michael White, a musician and winner of the National Endowment for the Arts National Heritage Fellowship, also spoke out on behalf of the bill, citing the significant role Internet radio provides in promoting jazz music.