The decision to increase fees was made by the Copyright Royalty Board (CRB) which reviewed an earlier decision to increase royalty fees collected from web broadcasters.

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For example, the amount of royalties paid by big stations should be negotiated, with any impasse resolved by the Copyright Royalty Board, a group of three judges set up to handle royalties involving Web broadcasting.

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Ivi tried to argue it was a cable-TV network for the purposes of these retransmission rights, because an exception to the Copyright Act gives cable operators the right to retransmit if they pay fees set by the Copyright Royalty Board, an arm of the Library of Congress.

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He now faces another copyright lobby-inspired royalty scheme, which penalizes new media entrants and forces Pandora to give half of its revenue to copyright owners.

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Congress stepped in and said that content owners need to get paid and set up a royalty system through the copyright office.

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The Tenth Circuit, however, pointed out that the URAA was fashioned as an example to other countries similarly grappling with the scope of copyright restoration and whether to require royalty payments and restrict derivative works.

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Under the terms of a 2009 agreement, Pandora and other web broadcasters must pay out up to 25 per cent of their revenues to copyright holders via SoundExchange, a royalty-collection organization affiliated with the Recording Industry Ass. of America.

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Ivi says it is just acting like a cable company, even making royalty payments to the U.S. Copyright Office.

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