NEW YORK (AP) — Internet radio broadcasters and the music industry appeared to be moving closer to resolving a dispute over a new system mandating higher royalty fees for streaming music online.Participants described the negotiations as constructive and said they hoped to build on the momentum achieved last week, when both sides promised quick progress on the issue at a closed-door Congressional meeting held by Rep. Ed Markey, a Massachusetts Democrat.

The talks were continuing past a July 15 deadline, when a new set of royalties mandated by a panel of three copyright judges went into effect. The judges made the ruling in May after the music industry and webcasters were unable to agree on a new royalty system to replace a previous set of agreements that expired at the end of 2005.

The new royalties could pinch companies large and small that stream music over the internet, a service enjoyed by millions of people. Major commercial radio stations, small entrepreneurs, NPR and college radio stations as well as online companies like Yahoo Inc. and Time Warner Inc.'s AOL all stream music online.