Internet Radio Fairness Act

Declares further that the first determination of terms and rates of royalty payments made after enactment of this Act shall apply to transmissions made by small business concerns during the period between the enactment of the Digital Millennium Copyright Act and the date provided for in that determination.

Requires the copyright arbitration royalty panel to establish rates and terms in accordance with specified objectives.

Amends Federal copyright law to declare that, except in the case of a motion picture or other audiovisual work, it is not a copyright infringement for a transmitting organization entitled to transmit to the public a performance or display of a work, under a license or transfer of the copyright, or for a broadcast radio station licensed by the Federal Communications Commission that makes a broadcast transmission of a sound recording in a digital format on a nonsubscription basis, to make one or more copies or phonorecords of that work, if each copy or phonorecord is: (1) retained and used solely by the transmitting organization that made it; and (2) used solely for the purpose of making the transmitting organization's own transmissions or for purposes of archival preservation or security.