Relief for Small-Business Webcasters Support H.R. 5469 September 27, 2002 Dear Colleague: I have introduced H.R.5469, a bill to help webcasters (Internet radio broadcasters) remain in business while they are resolving a commercial dispute with record companies. If my bill is not enacted prior to October 20, these small-business will be forced to shut down - even though their case is still on appeal. By way of background, the "Digital Millennium Copyright Act," which Congress passed in 1998, permitted webcasters to purchase a "compulsory license" to operate by paying copyright owners a fee, negotiated privately or set by an arbitration panel, for the performance of music. After industry negotiations failed, the Copyright Office convened an arbitration panel - called a "CARP" - to determine the rate. The CARP issued its rate-making decision, which was later rejected by the Librarian of Congress pursuant to his authority under the Copyright Act. The Librarian's final decision, released on June 20, lowered the CARP rate further. Webcasters and copyright owners are still dissatisfied and have appealed to the D.C. Circuit for relief. Since the Librarian's decision is slated to take effect on October 20, and the Court of Appeals has yet to set a trial schedule, the webcasting industry that Congress sought to nurture in 1998 may become extinct before the litigation officially ends. H.R. 5469 solves this problem by staying the implementation of the decision for six months, providing both sides the opportunity to have their day in court. It is only fair that private parties be allowed to pursue all legal remedies available to them before judgment is imposed. Promote fairness and support small businesses - vote for H.R. 5469. F. JAMES SENSENBRENNER, JR. Chairman, Committee on the Judiciary