May 13, 2010
ASCAP Rate Court Judge Announces $40 Million Interim License Fee Decrease for Radio Industry
Nashville, TN – The Radio Music License Committee (“RMLC”), which negotiates music licensing fees for most of the radio industry with the major performing rights organizations (ASCAP and BMI), announced today that the U.S. District Court’s Judge Denise Cote (charged with determining license fees for ASCAP) has reached 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 1, 2010, but the corresponding interim fee adjustment will not be applied retroactively. The appropriate 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 1, 2010.
Similar interim fee proceedings are pending with BMI.
The RMLC’s Executive Director, Bill Velez, commented on today’s ruling: “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.”
January 2010
Radio Music License Committee and ASCAP Reach Accord On Temporary License Fee Decrease
The industry-wide radio industry license with ASCAP expired as of December 31, 2009. The Radio Music License Committee recently reached agreement with ASCAP on temporary fees to be paid by radio operators, beginning January 1, 2010. The temporary schedule reflects a provisional fee discount of approximately 7% (as against 2009 station fee levels). This fee reduction is reflected in the ASCAP monthly billings commencing January, 2010.
Absent a negotiated settlement between the RMLC and ASCAP 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. The rate court process may consume one or more years. To bridge the gap prior to determination of a final fee order (which will be retroactive to January 1, 2010), the RMLC and ASCAP have agreed to the aforementioned provisional fees that will remain in effect until the rate court determines interim fees, which is expected to occur during the second quarter of 2010. The RMLC remains hopeful that the rate court’s interim fee decision will result in a further fee decrease.
The RMLC conducted voluntary negotiations in 2009 with both ASCAP and BMI. The separate discussions reached impasse, which left the parties no alternative but to petition fee determination from the applicable rate courts in New York. The RMLC has also reached a similar accord with BMI, whose licenses also expired at the end of 2009.
RMLC is committed to the following goals for new ASCAP licenses effective January 1, 2010:
- implementation of licenses that fairly and accurately reflect station/industry economic performance with the least amount of administrative intrusion;
- per program and/or blanket “carve-out” license alternatives that offer the potential for further fee discounting based upon a station’s ability to make strategic music programming choices;
- negotiation of licenses that provide the broadest scope of rights possible with respect to new media applications (e.g., streaming, HD multicasting, mobile and other “through-to-the-listener” applications relevant to terrestrial radio broadcasting); and
- continuation of the existing, court-mandated RMLC funding mechanism.
Streaming and HD Radio Note:
The current ASCAP over-the-air license incorporates HD multicasting as well as simulcast streaming of the analog and HD signal to a station’s website.
