Web royalty hike set for Sunday

More Web radio stations are likely to shut down on Sunday, the start of a royalty hike that will see fees more than double by 2010, after a federal appeals court declined to intervene in the matter. "Nobody wins when Internet radio gets shut down, including artists who ostensibly are being represented by SoundExchange, the organization pushing for high rates," said Tim Westergren, founder of Pandora, which is not shutting down. "It's ironic. If SoundExchange gets their way, it means less money for musicians because people will cease to pay royalties all together."

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