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Internet radio station operators are concerned that skyrocketing royalty fees could zap an industry that's still in its infancy. However, technology may be bringing some solutions to the vexing problem of paying artists a royalty fee each time a listener hears a song.

First an iPhone price cut left early buyers feeling foolish, and then came reports that some iPods were spitting sparks. Now the new iPhone 3G has been marred by bugs, spotty service, disappearing programs for the device and a veil of secrecy over software developers trying to broaden its appeal. Such a string of mishaps and missteps might throw another electronics company into crisis.

A New York investment firm's $278 million purchase of PRC in 2006 was a bust, with the Plantation, Fla., call-center operator going bankrupt within 14 months of the deal. Now Diamond Castle Holdings claims it was swindled by the seller -- Barry Diller's IAC/InterActiveCorp. Diamond Castle entities last week sued IAC for about $135 million in damages in New York Supreme Court.

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