RMLC Seeks Injunction Against GMR

More Billable Hours For The Lawyers

The RADIO MUSIC LICENSE COMMITTEE (RMLC) has filed an motion they say, "to protect commercial radio stations across the nation potentially, and in the Commonwealth of Pennsylvania specifically, against actions by GLOBAL MUSIC RIGHTS."

The RMLC filed an antitrust lawsuit in the federal court in PHILADELPHIA, late last year against GMR, based on GMR’s attempt to require commercial radio stations to pay prices for music performance licenses that RMLC says, "are unfairly high and anticompetitive."

In late MARCH, GMR posted to its website, "For years, the RADIO MUSIC LICENSING COMMITTEE (RMLC) acted as the sole negotiating arm for 90% of the terrestrial radio stations across the country. The RMLC openly stated that its very purpose was to utilize the group’s colossal buying power to cap the cost of acquiring music. GMR is a new performance rights organization that represents the interests of a handful of highly-talented songwriters whose works drive listenership and increase advertising dollars for radio broadcasters. The RMLC tried to bully GMR -- but the tiny startup stood up and said no. The RMLC responded by suing GMR, accusing the new company with fewer than 100 songwriters of being a monopoly. As part of that lawsuit, the RMLC told GMR and its members that it did not negotiate the terms of licenses between RMLC members and the PROs and, going forward, GMR must approach each radio station owner directly and individually to make deals. GMR did so and we’ve entered hundreds of licenses with radio stations," adding, "Due to pending litigation with the RMLC, however, we cannot negotiate or enter licenses with stations owned by companies headquartered or based in PENNSYLVANIA."  

RMLC said in a statement, "GMR has now made clear that it will maintain this position unless these stations and the RMLC relinquish important legal rights against GMR. Although GMR is currently targeting these PENNSYLVANIA-based entities, the RMLC is acutely aware that GMR could broaden its target to stations in any of, or all of, the 50 states.  So while the RMLC, at this moment, remains primarily concerned with, 'stations owned by companies headquartered or based in PENNSYLVANIA,' the RMLC’s true concern is with regard to all radio companies and stations throughout the UNITED STATES. To this end, the RMLC has asked the federal court in PHILADELPHIA, PENNSYLVANIA to enter a preliminary injunction order preventing GMR from engaging in these overtly coercive actions   while the RMLC’s lawsuit proceeds.  Further, the RMLC’s motion requests that the court order GMR to continue to offer interim music performance licenses, to those radio stations who elect to take one, on identical terms to those interim licenses already in effect for the past several months. That relief would prevent GMR from further inordinate pressure on the radio industry while the federal court resolves the RMLC’s antitrust claims against GMR."

The GMR issued the following statement in response: "This frivolous motion by the industry-dominating RMLC is a transparent attempt to create jurisdiction in PENNSYLVANIA – a state where neither organization has offices or employees, where no GMR songwriters or publishers live, and where no relevant meetings ever took place. The RMLC’s latest motion is yet another waste of the court’s time and an attempt to bully songwriters into accepting below-market-rate payments for their music. GMR continues to freely offer interim licenses to radio stations; our attempt to offer licenses to stations based in PENNSYLVANIA was rejected by the RMLC itself prior to the filing of this motion.  We are confident the court will see through these baseless allegations."

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