RMLC, BMI Agree To Temp Fees

Temp Deal on Radio Licensing

THE RADIO MUSIC LICENSE COMMITTEE (RMLC) has reached agreement with BMI on temporary fees to be paid by radio operators, beginning JANUARY 1st, 2010. The temporary schedule will reflect a provisional fee discount of 7% (as against 2009 station fee levels). This fee reduction should be reflected in the JANUARY 2010 BMI monthly billing.

Absent a negotiated settlement between the RMLC and BMI on long-term fees, the U S DISTRICT COURT in NEW YORK will make a determination of interim and permanent fees for the new contract period. To bridge the gap until the rate court determines interim fees, which is expected to occur during the second quarter of 2010, the RMLC and BMI have agreed to these provisional interim fees. Both the provisional and interim fees will be subject to adjustment retroactive to JANUARY 1st, 2010, when the court eventually issues its final fee ruling.

The RMLC conducted voluntary negotiations earlier in the year with both BMI and ASCAP, but reached no agreement with either party. That led them to petition fee determination from the applicable rate courts in NEW YORK. The RMLC announced last week that it had reached terms with ASCAP that mirror this BMI agreement.

"It is unfortunate that the gap in our respective positions was so vast that it made it virtually impossible to reach a voluntary agreement with BMI as to new licenses commencing in 2010," RMLC Chairman, ED CHRISTIAN said. "We do, however, look forward to presenting the industry's case to the rate court, and remain confident that we will be able to achieve an appropriate rate reduction when that process concludes."

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