Details are still coming in, but it looks like the U.S. Government is hoping to make it more attractive for Internet Radio businesses to be run off-shore then in the States. The decision (like much Internet-related policy) creates a market condition that potentially pushes revenue and innovation to other countries.

“The new rules issued by the U.S. Copyright Royalty Board earlier this year prescribe rate hikes of 0.08 cent per song per listener retroactive to 2006. They would also climb to 0.19 cent per song by 2010.” [cnet]

The fees are high enough that many small players (where small==independent) will be forced to shut down. The irony, of course, is that broadcast radio continues to pay no fees at all (and to not play the songs I want to hear, which might be why they get the free ride.)

For more on the issue, see:

And of course, the blog post that almost saved the day: