College and high school radio stations that broadcast music online are closely watching as events unfold that could decide whether they must pay costly new royalty fees.

Internet radio broadcasters got a reprieve in their struggle against higher music royalties as the deadline for paying fees under the new system was postponed by two months, to July 15, but many officials still fear that paying those royalties will cause some internet radio stations to close.

The Copyright Royalty Board (CRB) came up with the new fee structure in March after webcasters, which include several small companies but...

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