Pandora speaks out against Nadler's music royalties draft bill

Online music service Pandora spoke out against Rep. Jerrold Nadler's (D-NY) draft legislation on music royalties, saying it would discriminate against new technology and hamper innovation.

The Web company supports a competing draft bill by Rep Jason Chaffetz (R-UT), which is aimed at lowering the royalty fees Internet radio services pay so they're level with the royalty rates paid by cable and satellite radio. Chaffetz's legislation would put Internet radio on the same royalty-setting standard as cable and satellite radio services, or the 801(b) standard of the Copyright Act. Tim Westergren, founder and chief strategy officer of Pandora, took issue with Nadler's draft bill — the Interim FIRST Act — because it would not put Internet radio on that same rate-setting standard. “The current system for establishing royalty rates is astonishingly unfair," Westergren said. "Fairness demands that all music related rate settings utilize the same 801(b) standard."