Internet Radio Equality Act of 2007

Internet Radio Equality Act of 2007 - Declares to be ineffective: (1) the March 2, 2007, Determination of Rates and Terms of the U.S. Copyright Royalty Judges regarding rates and terms for the digital performance of sound recordings and ephemeral recordings; (2) the April 17, 2007, modification of that determination by an order denying motions for rehearing; and (3) the April 23, 2007, Final Determination of Rates and Terms and any subsequent modification by the Copyright Royalty Judges published in the Federal Register.

Replaces standards for determining reasonable rates and terms of royalty payments for public performances of sound recordings by means of eligible nonsubscription transmission services and new subscription services with a requirement that such rates and terms be established in accordance with stated objectives of the Copyright Royalty Judges. (Currently, rates and terms are required to distinguish among different types of eligible nonsubscription transmission services and include a minimum fee for each type.) Allows a minimum annual royalty for each provider subject to such rates and terms. Provides a transition rule for payment of royalties by providers of digital audio transmissions that would have been subject to the rates and terms nullified by this Act.

Revises royalty payment provisions concerning the use of certain works in noncommercial broadcasting to include: (1) sound recordings; and (2) performance or display by nonprofit organizations and public broadcasting entities. Provides a transition rule for the payment by a public broadcasting entity to owners of copyrights in sound recordings.

Allows a credit of any royalties received under the Determination of Rates and Terms deemed ineffective by this Act against other royalties required to be paid under this Act.