Dept. Of Justice To Review Consent Decrees Reached With ASCAP And BMI In 1941

DOJ Taking A Peek

The U.S. Justice Department is reviewing two consent decrees originally reached with ASCAP and BMI in 1941. The decision, "could upend the business of licensing music to online companies, movie companies, commercials, bars and restaurants," reports YAHOO! FINANCE.

The DOJ plans to review settlements reached with ASCAP and BMI to set how the organizations, which license most music in the United States, must operate. Both companies are concerned about a sharp increase in costs if the system is changed.

BMI issued this comment, “The DOJ’s long-anticipated review of the BMI and ASCAP consent decrees and call for public comment represent an opportunity to do what BMI has been advocating for years – modernize music licensing. BMI and ASCAP have already issued an open letter in which we share a proposed solution for the industry that will benefit music creators and licensees alike. We look forward to working with the DOJ, licensees and our other music partners to help ensure a smooth process that safeguards a vibrant future for music.”

THE MIC COALITION noted, "Less than three years ago, the Department of Justice completed a multi-review of the ASCAP and BMI consent decrees, concluding that they should not be altered. The MIC COALITION was formed to preserve the fundamental guidelines contained in the decrees, which are vitally important to millions of businesses and their consumers across the country. The MIC COALITION looks forward to highlighting the critical role the consent decrees continue to play in the proper functioning of the music licensing marketplace. Throughout their successful history, the decrees have helped mitigate anti-competitive behavior, while also ensuring songwriters and creators get paid when their music is played in the millions of American venues. The modification, elimination or even the possible sunset of the decrees at the present time would lead to chaos for the entire marketplace."

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