Here's Kurt Hanson's take on the NAB appeal. As Bag and Baggage points out, there's much discussion on Slashdot as to whether the NAB argument will help or hurt Internet-only stations.
I can't speak to the definition of song broadcast via Internet radio--although I will point out that streaming audio is neither a perfect digital copy nor easily duplicated, two concerns the odious DMCA was supposed to address--but I wanted to debunk part of the related notion that traditional radio should be exempt from royalties because of its supposed "promotional" value. To whatever degree that may be true for manufactured modern music acts like Britney Spears and 'N Sync, how the heck does that apply to the proliferation of "classic rock" and oldies stations? Can anyone argue with a straight face that the purpose of oldies stations is to spur record sales?
As I mentioned earlier, long-time singer-songwriter Janis Ian posted an eloquent diatribe against the notion that the RIAA intends to benefit anyone but the record labels. If current acts forego radio royalties in exchange for (over)exposure, fine and dandy...but there should come a point where royalties come due when the song gets perennial reply on classic or oldies radio.
(Props to Susanna of Cut on the Bias for emailing me this link.)