As a followup to an earlier NPTalk on webcasting royalty fees, the U.S. House of Representatives passed the webcasting royalty payment resolution bill introduced by Rep. James Sensenbrenner (R-WI), chairman of the House Judiciary Committee. The bill, H.R. 5469, basically allows small webcasters to pay out a percentage of their revenues, instead of the flat-fee to be paid by larger webcasters, to labels and artists, for permission to play recorded content. The bill was originally designed to grant a six-month reprieve from the royalty payments altogether, in an effort to force negotiations to produce a tangible agreement among all parties involved, rather than waiting on the decision of appeals currently pending in the federal courts. The new arrangement would allow small webcasters (those making under $1 million in revenue beginning in 2004) generating less than $250,000 to pay the greater of 10% of their revenue or 7% of their expenses, as royalties to artists and labels; and those making between $250,000 and $500,000 to pay the greater of 12% of revenue or 7% of expenses. The pressure is on to see the bill pass in the Senate for signature into law by President Bush before October 20, because that is the due date for royalty payments retroactive to October 1998 under the Library of Congress-approved royalty payment scheme. The bill would also allow small webcasters to pay retroactive royalties as the greater of 8% of revenue or 5% of expenses. Larger webcasters will have to adhere to the current royalty rate structure approved by the Library of Congress. The current royalty payment framework will be in effect throughout 2004, at which time a new arrangement will have to be reached, and a new structure approved.