The Words Get Heated Between Global Music Rights And RMLC

Keeping Lawyers Busy

Two weeks ago (NET NEWS 11/21), the RADIO MUSIC LICENSE COMMITTEE filed an antitrust suit against IRVING AZOFF's GLOBAL MUSIC RIGHTS, alleging that the upstart performance rights licensing agency is a monopoly controlling the music in its catalog that can charge monopoly rates for its repertory. 

Now VARIETY reports GMR, "filed a federal anti-trust suit on WEDNESDAY against the RADIO MUSIC LICENSE COMMITTEE, accusing the group of running an unlawful cartel on behalf of the nation’s radio stations."

“Unable to negotiate freely and fairly, and under threat of a group blockade from radio, the songwriters and the companies that represent them are forced to capitulate to the artificially depressed license fees the RMLC cartel demands,” VARIETY quote the suit as claiming.

GMR attorney DANIEL PETROCELLI said, “The law does not allow companies who are supposed to be competing against one another to be colluding with one another to keep their costs down,” PETROCELLI told VARIETY. “Business is conducted every single day in this world, and in every single industry, by consensual arrangements. This industry is no different. If they want to play these works they need to pay fair market value.”

The RMLC, has responded, with Executive Director BILL VELEZ commenting, "The RMLC will not roll over in the face of the baseless, bullying lawsuit filed yesterday by GLOBAL MUSIC RIGHTS.  GMR’s lawsuit is an obvious ploy designed to pressure the RMLC in response to the antitrust suit the RMLC filed against GMR in federal court in PHILADELPHIA last month.  GMR now tries to hide from reality: the fight between the RMLC and GMR stems from GMR’s attempt to impose monopoly pricing on the radio industry, and the RMLC’s opposition to that plan. Courts have recognized, for many decades, that without regulation of their rates, performing rights organizations (PROs) like GMR are anticompetitive and violate the antitrust laws.  That is why all the other PROs (ASCAP, BMI and SESAC) are subject to rate controls.  GMR baselessly criticizes the rates agreed to between the RMLC and the other PROs as unreasonably low, but conveniently ignores that the courts have regularly found them to be reasonable and non-discriminatory.  GMR’s claim that the RMLC is a cartel is frivolous and offensive; GMR apparently seeks to force all PROs to negotiate separately with more than 10,000 radio stations – a ridiculously inefficient proposal.  The RMLC looks forward to defeating GMR’s claims in court."

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