WASHINGTON (July 7, 2009)--The future of Internet radio appears more secure now that a handful of online stations have reached an agreement to head off a potentially crippling increase in copyright royalty rates.

The deal is the product of two years of negotiations between webcasters and copyright holders.

The talks were needed after the federal Copyright Royalty Board had dramatically increased the rates that Internet radio stations must pay artists and recording labels.

Many Internet radio stations have warned that the higher rates would put them out of business.

At least one popular online radio service, Pandora Media of Oakland, Calif., which derives much of its revenue from advertising, says the new agreement will help ensure its survival.