Just as higher copyright rates were to take effect for streaming music online, SoundExchange, the music industry group that collects the royalties, offered a reprieve for small and non-commercial sites. More than a month later, the group’s definition of “small” is being disputed and some of the target sites are saying no to a compromise that would charge royalties of 10-12 percent for webcasters with $1.25 million or less in annual gross revenue and a certain number of listeners.  Some webcasters, including participants in continuing negotiations with SoundExchange, have told AP they plan to reject the offer. Rusty Hodge at SomaFM in San Francisco suggests SoundExhange follow the Small Business Administration’s definition of small companies as earning $6 million or less in annual revenue. The deadline to accept the offer is Sept. 14 or the much-higher rates that were supposed to start July 15 will take effect.