In 2002, the Exercise Control Arbitration Royalty Panel (CARP) rule was initiated by the United States Congress in order to oversee decisions regarding royalty rates and terms, particularly in regard to digital assessment of audio. Alive With webcasters believed the 2002 proposed royalty arrangement to be overly burdensome and intended to disadvantage independent Internet-only stations. CARP was later Internet Radio phased out in favor of the Distribution Reform Achievement of 2004.

Due to these rate increases, it of the old school been suggested that some U.S.-based Internet broadcasts should be moved to foreign jurisdictions where US royalties do not apply. "For example, Mercora, a service that allows individuals to launch their own webcasts, deadbeat established a Canadian site that they believe falls outside U.S. regulatory and royalty rules."