The bill is now awaiting President George Bush's signature. Passage of the bill means that Internet radio stations, such as Pandora, will be granted an extension of the deadline to negotiate royalty fees with SoundExchange, an unincorporated division of the Recording Industry Association of America.

Internet radio stations are fighting a March 2007 Copyright Royalty Board decision that set royalty rates for Internet radio streaming at a price Web radio stations said could put them out of business: The rates for 2008 are $.0014 per performance; to $.0018 in 2009 and $.0019 in 2010. Traditional, or "terrestrial" radio stations pay publishing royalty fees only, Internet stations pay both the performance and publishing fees.

Tim Westergren, founder of Pandora, has been a vocal proponent of the bill, and on his blog thanked supporters, noting that "the table is set," although the deal is not yet completed.

"This legislation is not the final answer," SaveNetRadio spokesperson Jake Ward said in a statement, "but it is an essential step toward a lasting and much-needed solution. For more than 18 months, our champions in Congress have fought battle after battle to ensure Internet radio's survival and the prosperity of independent artists; that fight has not been in vain."