In two distinct rulings, one by the Federal Communications Commission, and the other by the Library of Congress' Copyright Royalty Board, the U.S. government took a firm stand in favor of small artists and music labels -- and local programming over media conglomerates -- even as it drove a regulatory stake through the heart of a fast-growing and popular medium for niche and independent music: Internet radio.

The two rulings set off a flurry of media coverage and online debate of the proper role of government in promoting diversity on the airwaves. They also painted a picture of a federal government at odds with itself about how to balance the rights of the public with those of artists, copyright holders and media conglomerates. But with music fans and artists increasingly disenchanted with the status quo and newly empowered by technology, the squabbling over royalties and copyright may already be causing a paradigm shift that will transform the music industry.

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