SoundExchange, the organization that collects royalties for copyright owners in the music business, last week extended a compromise offer for Internet radio, PC Magazine is reporting. The compromise is aimed at "allaying the fears that sites like Pandora and Live 365, which offer multiple streams, would be forced out of business when the new fees go into effect later this month."

Previously, the stations had to pay $500 each year per channel, regardless of the number of channels. That would have bankrupt Internet radio stations which tend to offer thousands of channels (400,000 in the case of Rhapsody alone). It's clear that the current regulations aren't designed for Internet radio, and that the required fees are ridiculous.

SoundExchange is proposing a $2,500 price cap, which would easily solve the problem. But there's still a lot of ground to cover before an agreement can be signed, according to the article. Here's hoping that Internet radio will continue to flourish after July 15th.

Analysis: A Reprieve for Internet Radio? [PC Magazine]