If over-the-air radio had to pay SoundExchange

According to the Radio Advertiing Board, 2006 total broadcast radio revenue was $21,669,000,000 - or $21.7 billion. If over the air braodcasters were paying just 3% of their revenues to SoundExchange, that would be $650 million a year in royalties. ($21,669,000,000 x 3% = $650,070,000). Which would be 15 times the total revenues that SoundExchange pulled in last year.

Yet, over the air radio is exempt from paying these royalties. But Satellite and internet radio is not.

Here's an idea for SoundExchange: charge all radio broadcasters the same rate, and charge them 3% of gross revenues. You would increase your revenues by at least 1500%. That sounds pretty fair, doesn't it?

You'd make LOTS of new revenue, and you wouldn't kill off small, independent internet radio stations.

(inspired by a speech by David Carson, General Counsel of Copyright, Library of Congress at the Future of Music Coalition Policy Conference)