A trade group representing small Internet radio stations may be getting ready to sue the Recording Industry Association of America (RIAA) on antitrust grounds, unless the RIAA re-opens talks on Webcasters' royalty rates to the music industry.
The Webcaster Alliance, a Las Vegas-based group claiming over 300 members, was reported to be sending a letter to the RIAA July 9, stating intentions to sue unless the talks were re-opened, according to the Washington Post.
"We're trying to negotiate with these people, but with a big stick," Webcaster Alliance attorney Perry Narancic told the Post, adding the current royalty structure could force up to 90 percent of small commercial Net radio stations to shut down if it isn't changed.
RIAA spokesman Jonathan Lamy told the Post his group negotiated in good faith with the Webcasters and "worked diligently to negotiate fair agreements" with flexible rates and terms for large and small Webcasters alike.
“Today is the culmination of many months of frustration," said Webcaster Alliance president Ann Gabriel in her own statement, accusing the RIAA's attorney of telling them earlier this year that he "didn't care if 25,000 Webcasters went out of business" She accused the RIAA of "anticompetitive attitude and action."
