The U.S. Supreme Court on Monday declined to review the federal Copyright Royalty Board's (CRB) latest hike in royalty rates that webcasters must pay to play audio recordings, rejecting an appeal from a radio trade group. The National Religious Broadcasters Noncommercial Music License Committee had challenged the rate increases on the grounds of religious freedom and administrative procedure.

Religious Webcasters' Royalty Hike Suit : Appeal Denied

The justices refused the committee's February petition, which sought to overturn the rate hikes. The petition claimed the hikes amounted to religious discrimination and alleged that the CRB had not adhered to proper procedures.

Although the rule does not explicitly impose higher rates on religious webcasters, the committee argued that the noncommercial rate increases created a "two-tier noncommercial rate structure" that favored secular speech over religious expression. They cited the Religious Freedom Restoration Act, noting that religious radio stations were subjected to higher rates than those charged to National Public Radio-affiliated stations, which had negotiated a separate agreement for lower rates.

Claims of Religious Discrimination

"The result is government suppression of religious speech online, skewing 'the modern public square' in favor of secular content," the NRB committee stated. They further claimed that the rate hikes violated the Administrative Procedure Act by shifting the burden of proof to the committee and introducing a new expert testimony requirement midway through the review process.

Religious Webcasters' Royalty Hike Suit : CRB's Defense

In a May response, the CRB countered that there was no evidence to support the committee's allegations of discrimination. They maintained that the D.C. Circuit had appropriately upheld the royalty rates following a detailed review.

Background and Impact

The Supreme Court's order leaves intact a D.C. Circuit panel's July 2023 decision affirming the rate increases. In 2021, the CRB raised rates for noncommercial webcasters—stations owned by the government or tax-exempt organizations—to $1,000 per year for a certain threshold of programming hours per month, with an additional charge of $0.0021 per performance beyond that threshold.

A three-judge panel found the rate hike to be reasonable and within the CRB's discretion. The full D.C. Circuit declined to review the panel's decision in September.

The NRB committee is represented by John J. Bursch, Rory T. Gray, and Cody S. Barnett of the Alliance Defending Freedom, as well as Karyn K. Ablin of Fletcher Heald & Hildreth PLC. The CRB is represented by the U.S. Solicitor General's Office.

Religious Webcasters' Royalty Hike Suit : Conclusion

The Supreme Court's refusal to hear the Religious Webcasters' Royalty Hike Suit marks the end of this particular legal battle, solidifying the CRB's authority to set and enforce these royalty rates.