radio music license committee

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This week it was announced that the Radio Music License Committee, the organization that represents the commercial radio industry in its negotiations with performing rights organizations over the public performance rights in musical works (the musical compositions – the words and music to any song), had entered into settlement agreements with both ASCAP and BMI to settle rate court litigation over the amount of royalties to be paid by the industry for the period from 2022 through 2029.  Rate courts, pursuant to the antitrust consent decrees under which both ASCAP and BMI operate, determine reasonable rates for music licensed by ASCAP and BMI if parties cannot voluntarily negotiate deals for the use of that music.  Agreements between RMLC and both ASCAP and BMI expired at the end of 2021, so the commercial radio industry has been paying interim rates at the level of the prior agreements since January 1, 2022.  Now both organizations have reached deals with RMLC for the rates for the next three years, and those deals include a “true up” for the difference between the old rates and the new rates for the period from 2022 through the end of 2024. 

The rates for BMI are increasing from approximately 1.7% of a station’s revenue to the following levels:

  • 2.14% for 2022 and 2023,
  • 2.26% for 2024,
  • 2.19% for 2025
  • 2.20% for 2026, 2027, 2028, and 2029

The agreements also contain details about lower rates for stations that have significant talk or other non-music programming, and definitions of what constitutes “revenue” that is subject to royalties.  Under the BMI agreement, the difference between the rates from 2022 to the end of 2024 under the prior agreement (2024 being the last full year for which station revenues have been reported) and that specified in the new settlement must be made up by monthly payments over the next 18 months, starting with payments in October 2025. 

While the ASCAP rates have not been made public, we can assume that the increase is not as large as that for BMI, as BMI announced their rate increase as being one of “historic” size.  But the ASCAP announcement does reference an increase.  Stations should learn the details of that increase from private correspondence from ASCAP or the RMLC in the near term.  Why would RMLC agree to these rate increases?Continue Reading BMI and ASCAP Enter into Agreements with Commercial Radio Industry – Music Royalty Rates Going Up Retroactive to 2022

In a press release issued today, the Radio Music License Committee (RMLC) and performing rights organization Global Music Rights (GMR) announced that enough commercial radio stations signed the GMR licensing agreement to allow the settlement of the RMLC/GMR litigation to become effective.  As we wrote when the settlement was announced early last month,…

Here are some of the regulatory developments of significance to broadcasters from the last week, with links to where you can go to find more information as to how these actions may affect your operations.

  • The FCC this week announced that it will vote on two items of interest to broadcasters at its next Open

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Here are some of the regulatory developments of significance to broadcasters from the last week, with links to where you can go to find more information as to how these actions may affect your operations.

  • Music licensing organization Global Music Rights (GMR) has agreed to a three-month extension of its current interim licensing agreement. GMR

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Here are some of the regulatory developments of the last week of significance to broadcasters, with links to where you can go to find more information as to how these actions may affect your operations.

  • Global Music Rights (GMR) has offered commercial radio stations an extension of their interim license for the public performance of

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Global Music Rights, one of the newest performing rights organization licensing the public performance of musical compositions, has agreed to extend its interim license with commercial radio broadcasters.  That license is set to expire at the end of March (see our article here).  This interim license has been offered and extended for the last several years to allow stations to perform GMR music while GMR litigates with the Radio Music Licensing Committee over whether GMR is subject to any sort of antitrust regulation of the rates that it sets (and GMR’s countersuit over whether the RMLC itself violates the antitrust rules as a buyer’s cartel, by allegedly organizing all the buyers of GMR’s music to hold out for a specific price).  We wrote about that litigation here.  With the pandemic, the lawsuit which should have already gone to trial is likely not going to be heard until possibly next year, as discovery in the case has been postponed until later this year.

Today, the RMLC notified radio broadcasters that GMR will again extend its interim license while the litigation plays out – but GMR wants a 20% increase in the royalties that it receives.  RMLC made clear that this is not a negotiated rate – it is one that GMR has imposed with no input from RMLC.  Stations should expect to hear from GMR about the extension by March 15.  If they do not, stations interested in the extended license should reach out to GMR.  Many stations are confused by this royalty, so we thought that we would provide some background.
Continue Reading GMR Offers to Extend Its Interim License With Commercial Radio Stations – But It Wants a 20% Increase in Royalty Payments

Here are some of the regulatory and legal developments of the last week of significance to broadcasters, with links to where you can go to find more information as to how they may affect your operations.

  • The FCC this week released a Notice of Proposed Rulemaking proposing changes to the fees it charges broadcasters for

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The Radio Music License Committee yesterday told members that Global Music Rights (“GMR”), the performing rights organization that began a few years ago to collect royalties for the public performance of songs written by a select number of popular songwriters (including Bruce Springsteen, members of the Eagles, Pharrell Williams and others who have withdrawn from ASCAP and BMI) has agreed to extend its interim license for commercial radio stations until March 31, 2021. The notice says that GMR will be contacting stations that signed the previous extension (through March 31 of this year) to extend the interim license for another year on the same terms now in place. If you don’t hear from GMR by March 15, the RMLC suggests that you reach out to GMR directly (do not contact RMLC as they cannot help) to inquire about this extension.

As we have written before (see our articles here, here and here), GMR and the RMLC are in protracted litigation over whether or not the rates set by GMR should be subject to some sort of antitrust review, as are the rates set by ASCAP, BMI and even SESAC (see our article here on the SESAC rates). GMR has counterclaimed, arguing that RMLC is a “buyer’s cartel” in violation of the antitrust laws.  Earlier this year, the lawsuits were consolidated in a court in California, where litigation is ongoing (see our article here about the transfer).  In our most recent article about the litigation, we noted that the court rejected motions from each party asking that the other’s claims be dismissed.  Thus, unless there is a settlement, the case will go to trial.  The decision to extend the interim license for a year, instead of the six-month period in previous extensions, may indicate that GMR at least expects that the litigation will continue.
Continue Reading Another Interim License Extension Offered by GMR to Radio Broadcasters – This Time for a Full Year – An Indication of the Status of the Litigation With RMLC? 

Global Music Rights, the relatively new performing rights organization that signed a number of composers of popular songs away from ASCAP and BMI in order to seek higher music royalties for the public performance of their works on radio stations and other media platforms (see our articles here and here), lost one round in its litigation with the Radio Music License Committee in RMLC’s attempt to bring GMR under some sort of rate review under the antitrust laws.  RMLC has alleged that GMR, by combining multiple artists in a single essentially take-it-or-leave-it package, is able to charge rates well above what any artists could receive on its own, thus violating the antitrust laws (see our articles here and here).  This is a theory like the one which lead to an arbitration with SESAC dramatically lowering royalty rates the radio industry pays to that organization (see our articles here and here).  In a decision released Friday, the Judge presiding over RMLC’s case rejected GMR’s arguments that the suit should be dismissed without a trial.   The Judge, in a short three-page opinion, said that viewed in their most favorable light to RMLC (which is the standard used in deciding on such motions), the facts alleged by RMLC were enough to support the claims it made in the lawsuit, so the case will go to trial.

But this is not necessarily a great victory, as the Judge notes that it remains to be seen whether, when the full facts are introduced at the trial and challenged by GMR, these facts will in fact be enough to sustain the claims of RMLC.  A similar finding was made in GMR’s countersuit – arguing that RMLC formed an illegal buyer’s cartel in violation of the antitrust laws by trying to negotiate royalty rates for most commercial radio operators (see our article here on that countersuit).  The Court rejected RMLC’s argument that the GMR suit should be dismissed, finding that there were enough facts raised to potentially support GMR’s claims, though also warning that it remained to be seen if, once the facts were presented and challenged at trial, whether they indeed would sustain GMR’s claims.
Continue Reading Litigation Continues as Court Rejects GMR Motion to Dismiss RMLC Lawsuit – and RMLC’s Request to Dismiss GMR Claims

BMI and the Radio Music License Committee announced a settlement of their rate court litigation over the royalties that commercial radio will pay for the public performance of musical compositions licensed by BMI.  While we have not yet seen the agreement, the press release already raises one issue likely to sew confusion in the broadcast industry – the extent to which the agreement allows the use of music in podcasts.  While the press release says that the BMI license includes the use of music in podcasts, radio stations should not assume that means that they can start to play popular music in their podcasts without obtaining the rights to that music directly from rightsholders.  They cannot, as BMI controls only a portion of the rights necessary to use music in podcasts and, without obtaining the remaining rights to that music, a podcaster using the music with only a BMI license is looking for a copyright infringement claim.

So why doesn’t the license from BMI fully cover the use of music in a podcast?  As we have pointed out before, a broadcaster or other media company that has performance licenses from ASCAP, BMI, SESAC and even GMR does not get the right to podcast music – nor do the SoundExchange royalty payments cover podcasts. These organizations all collect for the public performance of music. While podcasts may require a performance license (see our article here about how Alexa and other smart speakers are making the need for such licenses more apparent as more and more podcast listening is occurring through streaming rather than downloads), they also require rights to the reproduction and distribution of the copyrighted songs and the right to make derivative works – all additional rights given to copyright owners under the Copyright Act. These additional rights are not covered by the public performance licenses from ASCAP, BMI, SESAC, GMR and SoundExchange, nor are the rights to use the “sound recording” or “master” in the podcast. What is the difference between these rights?
Continue Reading BMI Settlement of Royalty Battle with RMLC to Include Music in Podcasts? – Not So Fast….