2003 FM translator processing

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In the United States, performing rights in musical compositions (or “musical works” as the Copyright Act refers to them – the words and music of a song) are generally licensed by a “performing rights organization” or a “PRO.”  The U.S., unlike most countries where there is a single organization that collects these royalites, has multiple such organizations.  The recent doubling in the number of PROs triggered the Copyright Office to initiate a Notice of Inquiry last week requesting public comment on issues related to these organizations.  What are the issues that led to this inquiry? 

As set out in the Notice, in the U.S., performance rights in musical compositions have for over 80 years been licensed by three PROs – ASCAP, BMI, and SESAC.  Yet, since 2013, three new PROs have begun (GMR, PRO Music, and AllTrack).  These new PROs are not all equal. GMR has compiled a roster of songwriters who wrote many well-known songs in many different musical genres, and it has aggressively pursued royalties for the music in their repertoire – see, for instance, our articles here and here on their aggressive efforts to compel the radio industry to pay royalties.  PRO Music, while it has sought to receive licenses from various businesses, is a newer organization with music that appears to be concentrated in certain musical genres.  AllTracks is the newest of the PROs and, at this time, their licensing strategy remains to be seen. 

With at least six PROs representing composers of musical works in existence, Congress has received complaints that businesses using music have been confused by demands for royalty payments from these new organizations, accompanied by threats of lawsuits if royalties are not paid.  The Notice of Inquiry does not even note that the landscape is even more complicated, as there are additional PROs claiming rights in the underlying compositions in spoken word recordings – see our article here – and, from time to time, PROs arise that purportedly represent certain foreign-language recordings.  There is, no doubt, confusion among those who publicly perform music and need to be licensed to play that music about who they have to pay, and what these users are getting when they pay their royalties. Continue Reading Copyright Office Commences an Inquiry into the Proliferation of Performing Rights Organizations – Looking at the Complexity of Licensing Musical Works in the United States

While much of the attention paid to FM translators has recently come from their use to rebroadcast AM stations and the upcoming windows for, first, relocating existing translators to AM markets and, later, a window for new translators for AM stations (see our article here), many forget that there are still many translator applications pending from the 2003 translator window.  While thousands of translators from that window were granted in the last few years (see, e.g., our articles here and here), there are still many pending mutually exclusive applications pending at the FCC.  While the commercial applications that are pending will eventually be resolved through auctions, by law, noncommercial applicants cannot be resolved through auction.  So, yesterday, the FCC released a Public Notice which initiates the process of requiring the remaining noncommercial translator applicants to submit information about their qualifications under the FCC’s point system used to resolve mutual exclusivity between such applicants.  By December 16, 2015, remaining noncommercial applicants need to submit to the FCC, electronically, information about the number of points to which they are entitled under the FCC’s criteria.  Failing to provide that information will lead to the dismissal of the pending application.

In reviewing the notice and the attached list of pending noncommercial applicants, one notes that some of the applicants don’t appear to be noncommercial entities.  But the FCC considers a translator to be noncommercial when that translator rebroadcasts a noncommercial station, regardless of the owner of the translator.  Obviously, however, the applicant who is not itself a commercial entity will not fare well in the point system analysis – likely lacking the ability to claim that it has a local established noncommercial presence with a local board, or part of a state-wide network.  While many of these translators are proposed to be operated on commercial frequencies, applications that are awarded through the point system analysis can only be sold to another noncommercial company that qualifies for the same number of points for a period of 4 years after it begins operations, and then only for its out-of-pocket expenses.  However, the Commission does offer an opportunity to avoid being selected through the point system.
Continue Reading Closing the 2003 FM Translator Window – Mutually Exclusive Noncommercial Applications Set for Resolution by Point System Paper Hearings

The next step in processing of the translators from the 2003 FM translator window is now upon us.  The FCC has asked for major market translator applications – those in the "Appendix A markets" (essentially the top 150 Arbitron markets and a few additional ones in which numerous translator applications were filed) and…