$40M Interim Music License Fee Decrease Announced

Announced Fee Decrease

The RADIO MUSIC LICENSE COMMITTEE, which negotiates music licensing fees for most of the radio industry with the major performing rights organizations ASCAP and BMI, received word from U.S. District Court Judge DENISE COTE last night regarding a decision on interim fees to be paid by radio operators pending the conclusion of the industry’s ASCAP rate case.

The interim fee decision calls for a reduction from 2009 levels of some $40 million in annual industry-wide fees payable by the radio industry to ASCAP. This interim fee decision supersedes a temporary fee decrease that had been voluntarily agreed to between the parties for the period commencing JANUARY 1st, 2010.

The corresponding fee adjustments should be reflected in the JUNE or JULY 2010 ASCAP monthly billing to stations. These fees will remain in place until final fees are either negotiated or determined by the Court after further proceedings. The final license fees -- whether higher or lower than the interim fees -- will be retroactive to JANUARY 1st, 2010.

Similar interim fee proceedings are pending with BMI.

RMLC Exec. Dir. BILL VELEZ commented, "We are pleased that the Court has afforded significant fee relief to the radio industry even as the litigation continues. We view this as an important first step towards a return to reasonable fee levels for the industry that reflect current economic conditions."

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