MUMBAI: SoundExchange, the music industry entity that collects and distributes digital royalties, announced on 18 September 2007, that 24 small webcasters have signed an agreement that would extend the "below-market" music royalty rates they have received since 1998 through 2010. The agreement essentially extends the term of the Small Webcaster Settlement Act, which covers webcasters earning less than $1.25 million in annual revenues.

While just 24 of the hundreds of small webcasting businesses signed the deal, SoundExchange said that others are in the process of signing, adding that some opted not to sign "because their business models benefit more from the regular commercial rates," while others "operate via webcast aggregators who handle payments on their behalf."SoundExchange is still negotiating royalty rates with larger commercial webcasters, like Yahoo, Live365 and Pandora.

SoundExchange head, John Simson said, "Giving small webcasters more time to build their businesses with below-market rates is something Members of Congress wanted us to get done, and we have."