It's Official: DOJ Decides ASCAP And BMI Consent Decrees Should Not Be Altered

No Change

ASCAP and BMI got the expected news from the U.S. DEPARTMENT OF JUSTICE TODAY (8/4), which decided not to accept the proposed changes to  music licensing antitrust agreements in place since 1941.

“The division’s investigation confirmed that the current system has well served music creators and music users for decades and should remain intact,” the department said.

In response to today's announcement by the DEPARTMENT OF JUSTICE (DOJ) that it has completed its multi-year review of antitrust consent decrees regulating two of the nation’s largest music performing rights organizations, NAB Pres./CEO GORDON SMITH said, "Local radio and television broadcasters strongly support the JUSTICE DEPARTMENT’s decision not to modify the ASCAP and BMI consent decrees. We appreciate the hard work of the DOJ during its diligent, comprehensive review and believe that this decision will ensure that ASCAP and BMI continue to fairly and efficiently license musical works in a manner that is pro-competitive. Broadcasters look forward to continuing our close relationship with these performance rights organizations, which have worked to the mutual benefit of songwriters, music licensees, and listeners around the world for decades." 

In comments submitted to the DOJ last month, NAB and the TELEVISION MUSIC LICENSE COMMITTEE (TVMLC) expressed their support for the proposed conclusion that no changes were warranted to the consent decrees. Under the current system, radio broadcasters pay $350 million and local television broadcasters some $150 million to songwriters and their music publishers every year.

BMI To Challenge 100% Licensing In Federal Court 

ASCAP and BMI reacted quickly, and have joined forces to fight the DEPARTMENT OF JUSTICE’s (DOJ) ruling. BMI announced it is taking legal action and has initiated the process to challenge 100% licensing in Federal Court. Concurrently, ASCAP announced that it will take the lead for the two PROs in pursuing a legislative solution to ensure the continued availability of fractional licensing as well as other remedies to the outdated consent decree regulations that disadvantage songwriters and composers in the digital age. In its recent public statement, the DOJ itself called for potential legislative relief. 

BMI Pres./CEO MIKE O’NEILL said, “The DOJ’s interpretation of our consent decree serves no one, not the marketplace, the music publishers, the music users, and most importantly, not our songwriters and composers who now have the government weighing in on their creative and financial decisions.  Unlike the DOJ, we believe that our consent decree permits fractional licensing, a practice that encourages competition in our industry and fosters creativity and collaboration among music creators, a factor the DOJ completely dismissed.  As a result, we have no recourse other than to fight the DOJ’s interpretation in court.  It won’t be easy, and we know it will take time, but we believe that it is the right thing to do and in the best interest of the industry at large.”   

ASCAP CEO ELIZABETH MATTHEWS stated, “The DOJ decision puts the U.S. completely out of step with the entire global music marketplace, denies American music creators their rights, and potentially disrupts the flow of music without any benefit to the public. That is why ASCAP will work with our allies in Congress, BMI and leaders within the music industry to explore legislative solutions to challenge the DOJ’s 100% licensing decision and enact the modifications that will protect songwriters, composers and the music we all love.”

The full copy of BMI’s pre-motion letter can be found here.  

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