WASHINGTON -(Dow Jones)- A U.S. House subcommittee is expected to pass a bill Thursday that would require radio stations to pay royalties to performers.

The next step for the bill would be a vote by the full Judiciary Committee. It is possible, but not likely, that it will reach the House floor this year, according to a Democratic aide.

The National Association of Broadcasters, which is fighting the measure, said Tuesday that it had secured support from a majority of House members on a resolution opposing the bill.

But the recording industry, which stands to gain millions from the bill, isn't giving up.

"The resolution was introduced before the bill" was drafted, said Daryl Friedman, vice president of advocacy at the National Academy of Recording Arts & Sciences.

The NAB-sponsored resolution says royalty requirements would severely hurt small radio stations and other private broadcasters at bars and hotels.

"All of those things ended up being accommodated in the bill," Friedman said, arguing that those changes could give some members leeway to vote for both proposals.

Sponsored by Rep. Howard Berman, D-Calif., the bill caps small broadcasters' fees at $5,000 annually and exempts bars and hotels.

While Berman responded to some concerns about small and private broadcasters, the basic premise of his proposal is in direct conflict with the NAB-sponsored resolution. It states that Congress shouldn't impose any charges relating to " the public performance of sound recordings on a local radio station."

Broadcast radio stations now pay song royalties to songwriters and producers, but they pay no performance fees for playing artists' music. By contrast, cable, satellite, and Internet radio pay performance royalties.

Despite the NAB's opposition, the measure has bipartisan support on the House Judiciary's Subcommittee on Courts, the Internet, and Intellectual Property, which is chaired by Berman. Judiciary Committee Chairman John Conyers, D-Mich., is a strong supporter. None of the Democrats on the subcommittee signed on to NAB's resolution.

Rep. Howard Coble, R-N.C., the subcommittee's ranking Republican, announced his support several weeks ago.

NAB Executive Vice President Dennis Wharton said the bill will face an uphill climb in the future, even if it passes fairly easily in the subcommittee.

"There is serious opposition to this bill even in the subcommittee. It will be increasingly clear as the process moves forward that there is broad bipartisan opposition," Wharton said.

Two Republicans on the subcommittee, Reps. Steve Chabot, R-Ohio, and Mike Pence, R-Ind., have signed on to the NAB's resolution opposing Berman's measure.

The NAB argues that Berman's bill would severely harm radio stations' ability to play music because broadcasters have seen flat profit margins in recent years.

"They may switch to a talk format," Wharton said.

Small radio stations were the focus of a hearing on the topic earlier this month, but larger broadcast companies such as Clear Channel Communications Inc. (NYSE:CCU) (CCU) and Cox Radio Inc. (NYSE:CXR) (CXR) would be on the line for millions if the bill becomes law.

Independent labels would be the beneficiaries of that money, as well as large record labels such EMI, Sony/BMG, and Warner Music Group, which is owned by Time Warner Inc. (NYSE:TWX) (TWX).

-By Fawn Johnson, Dow Jones Newswires; 202-862-9263; fawn.johnson@dowjones.com

    (END) Dow Jones Newswires   06-25-08 1724   Copyright (c) 2008 Dow Jones & Company, Inc.