The offer means that this sub-section of Internet radio providers would be guaranteed the same rates for the next several years that they have received since 1998 for the use of sound recordings owned by SoundExchange members. Sound recordings of non-members would still be subject to new rates.

Although webcasters of all sizes have started paying under the rates codified by the Copyright Royalty Board earlier this year, it had remained unclear to many small players what their obligations would be going forward.

This deal "takes the uncertainty out of the air" for most of their programming, SoundExchange Executive Director John Simson said in a press release, which was expected to go out late Tuesday. As part of the deal, small webcasters (those earning $1.25 million or less in total revenue) would pay royalty fees of 10 or 12 percent of revenue.

Small webcasters have until Sept. 14, 2007 to accept the agreement, officials said. Those who do not sign the paperwork but continue streaming will be responsible for paying the new, higher rates unveiled in March.

"We continue to negotiate with the relevant parties, and are hopeful that we can reach a solution that works for all small commercial webcasters," SoundExchange General Counsel Michael Huppe said. That kind of solution would have to get CRB approval.