The battle is far from over, but Internet radio and its fans have started to make an impact on Congress, and the RIAA may not get all it wants when it comes to performance royalty fees, according to the Wall Street Journal on Thursday. [Subscription Required.]

"Yesterday, groups representing online radio companies filed preliminary paperwork in the District of Columbia Circuit Court to appeal a ruling that would double rates payable to record labels in three years. They are also planning to file as early as today a motion to stay the ruling on the new rates, which they are supposed to start paying July 15, retroactive to 2006," Sarah McBride wrote.

Meanwhile, listeners are making an impact with their Congressional representatives. During two weeks in May, protests about the new Internet radio fees had greater traffic to Rep. Jay Inslee than both Iraq and immigration issues.

Live365 has been leading the way and has facilitated the sending of protest messages to Congress. Other radio stations and Websites have been vigorously reaching out to listeners.

At issue is the performance-royalty fee. For decades, Congress exempted traditional radio stations from paying the so-called performance royalty fee. The idea was that radio stations, by playing music, promoted the retail sales of records, then CDs. As new technologies have come online, and older technologies may be fading, the RIAA has sought to adjust the fees accordingly. Satellite radio pays about 4 percent of revenue in performance royalties. Now the RIAA wants new, hefty fees to apply to Internet radio and conventional radio stations as well. Exactly what the new rates will be is the issue before Congress.

So far, new legislation to overturn the royalty board’s recent decision is gaining momentum. Rep. Jay Inslee (D., Wash) is leading the way, with Sen. Ron Wyden (D., Ore.) and Sen. Sam Brownback (R., Kan.) also heavily involved.

Congress will have to work all this out, amidst competing interests. One thing is sure, the RIAA hasn’t done itself any favors lately in terms of its public perception and feelings of good will. In the long run, that may damage its case and, in turn, adversely affect artists. For now, however, it appears Internet Radio will survive.