In hopes of quieting the uproar over a recent Copyright Royalty Board (CRB) order that more than doubles royalty rates that Internet radio broadcasters must pay to stream music online, SoundExchange offered small webcasters a discount plan that would enable eligible entities to pay no more than 12% of their annual revenues in royalty fees. Adopted in March, the new CRB rate schedule went into effect last month and applies retroactively to music streamed online since January 2006. Charging that CRB’s decision would result in large webcasters paying between 40% and 70% of annual revenues and small webcasters surrendering upwards of 1200% of their revenues in royalty payments by 2010, opponents have warned that the CRB action is likely to cripple the webcasting industry as a whole and to run Internet radio firms out of business. This week, SoundExchange—an industry group tasked with the collection and distribution of royalties that cover online music broadcasts—began sending offers to small webcasters that would permit them, through the year 2010, to continue operating under terms specified in the Small Webcaster Settlement Act of 1998. Webcasters with annual revenues of less than $1.25 million would be eligible for the pact, which would only cover recordings owned by SoundExchange members. (Non-member recordings would be subject to the new CRB rates.) The proposed agreement also includes a usage cap that limits eligibility for discount pricing to five million listener-hours per month. Affected webcasters will have until September 14 to accept the offer. Noting that it was extending the offer at the request of Congressmen Howard Berman (D-CA) and Howard Coble (R-NC), SoundExchange said, “we continue to negotiate with the relevant parties, and are hopeful that we can reach a solution that works for all.”