Wednesday, July 18, 2012

BMI Settles with Radio Industry

BMI recently announced that it has settled (pending Federal Court approval) with the Radio Music License Committee over license rates for the public performance of it's roughly 7.5 million song repertoire. This concludes two-and-a-half-years of litigation and retroactively covers the period from 2010 - 2016. The new license terms address an expanded list of new media platforms utilized by the radio industry and also tie radio licensees to a percentage-of-revenue fee structure.

It's important to note that fees will now be lower than the prior agreement between the two parties and will effectively leave many radio stations with a credit balance for the remainder of this year. Reading the quote from BMI Senior Vice President, Licensing Michael Steinberg at the end of the article speaking about the burden of litigation, it's hard not to wonder if this is exactly the scenario David Israelite is referring to in his call for PRO consent decree reformation.

Read more details about the settlement on BMI's website:

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