BMI Wins Consent Decree Battle Over U.S. Department Of Justice, NAB Is Unhappy

Wins Consent Decree Battle Over U.S. Department Of Justice

The Court of Appeals for the Second Circuit has ruled against the U.S. Department of Justice (DOJ) and affirmed BMI’s consent decree victory. The Second Circuit agreed with Judge LOUIS L. STANTON’s SEPTEMBER 16, 2016 decision that the BMI consent decree allows for the practice of fractional licensing.

BMI Pres./CEO MIKE O’NEILL commented, "this is is a massive victory for songwriters, composers, music publishers and the entire industry. We have said from the very beginning that BMI’s consent decree allowed for fractional licensing, and we are incredibly gratified that Judge STANTON and the Second Circuit agreed with our position. We thank all the songwriters, composers, publishers and organizations who supported us throughout this process, which unfortunately, has been a nearly two-year distraction from our original intent which was to update our outdated consent decree and modernize music licensing. We look forward to our continued efforts to protect and grow the value of music."

In response to TODAY's decision by the U.S. Second Circuit Court of Appeals, NAB EVP/Communications DENNIS WHARTON said, “NAB is extremely disappointed with the court’s decision allowing fractional licensing of BMI songs played on radio and television stations, as well as in countless venues across AMERICA. If sustained, this decision could disrupt the music licensing marketplace and impede the delivery of music to listeners and viewers, resulting in less airplay of their favorite songs. For decades, NAB and BMI have had a mutually beneficial relationship that has benefited songwriters, broadcasters and tens of millions of listeners who enjoy hearing their favorite songs on free and local radio and television. We look forwarding to finding common ground with our songwriter friends to continue that partnership.” 

A2IM CEO RICHARD JAMES BURGESS said, "As a direct petitioner in this statutory rate setting hearing in pursuit of fairer rates for creators and labels, A2IM thanks SOUNDEXCHANGE and our partners: the major labels, RIAA, AFM, SAG-AFTRA, the artists’ community, and our members who participated. The CRB’s decision falls short of our objective of establishing platform parity, a willing buyer, willing seller standard, and a fair share of revenues generated for artists and labels. Nevertheless, a forty percent increase in rates is welcome and this result is a perfect example of what happens when the recorded music industry works together for the common good."

SOUNDEXCHANGE released a statement saying, "The COPYRIGHT ROYALTY BOARD (CRB) yesterday issued its decision on the determination of rates for SIRIUSXM’s satellite radio service, as well as for the cable and satellite television music services provided by MUSIC CHOICE and MUZAK, from 2018 through 2022. The CRB increased the rates for SIRIUSXM by more than 40%, from 11% of revenue to 15.5% of revenue, effective JANUARY 1, 2018. SIRIUSXM is the only satellite radio service in the UNITED STATES and reported revenues of $5 billion in 2016. By contrast, the CRB reduced the rates for MUSIC CHOICE’s and MUZAK’s services from 8.5% to 7.5% of revenue. SOUNDEXCHANGE advocated on behalf of its artists and rights owners in this rate litigation, which spanned 24 months."

“We thank the CRB for its work and appreciate their consideration of the case we laid out,” SOUNDEXCHANGE Pres./CEO MICHAEL HUPPE said. “SOUNDEXCHANGE is dedicated to our mission of ensuring that creators are properly recognized and compensated for the use of their work. And while the Copyright Royalty Board did not adopt the rates we proposed for SIRIUSXM, its ruling demonstrates an important step in the right direction toward valuing the contributions of the music creators represented by SOUNDEXCHANGE.”

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