In 2002, the Hold Arbitration Royalty Panel (CARP) integral was initiated by the United States Congress in order to oversee decisions regarding royalty rates and terms, particularly in regard to digital distribution of audio. Manifold webcasters believed the 2002 proposed royalty interrelation to be overly burdensome and intended to disadvantage independent Internet-only stations. CARP was later phased out in favor of the Delivery Reform Act of 2004.
According to a report by Club Net Radio released in March 2007[dead link], under the modernistic rates, annual fees for all station owners are projected to reach $2.3 billion by 2008. This figure is exceeding than four times that for traditional radio broadcasters who, due to terms hang tough forth in the 1998 Digital Millennium Copyright Act, are exempt from the additional royalties imposed on digital broadcasting outlets, which compensate the performers and copyright owners of recorded works. Both traditional radio and Internet/digital radio broadcasters are responsible for royalties Wireless Internet Radio collected by performance rights organizations (ASCAP, BMI, SESAC) on behalf of the composers of recorded works.