Tuesday morning, BMI filed an action in Federal Rate Court looking to set interim fees for radio stations represented by the Radio Music License Committee. The RMLC represents over 10,000 radio stations. BMI says the RMLC made an unacceptable offer and that’s the reason for the court filing. The RMLC did not respond to our request for comment.
In a statement sent out Tuesday morning, BMI said, “The RMLC has proposed an interim rate well below BMI’s previous deal, the effect of which would have a significant impact on the royalties BMI pays to its songwriters, composers, and music publishers. The RMLC has justified its proposed rate based upon incomplete and incorrect information regarding BMI’s radio performances. BMI disagrees fundamentally with the RMLC’s proposal and, consistent with past practices, is asking the Court to maintain its most recent rate while new terms are negotiated.”
Mike Steinberg, Senior Vice President of Licensing for BMI, said, “We attempted to negotiate in good faith with the RMLC for many months, and just before the end of the year, the RMLC presented an interim rate that significantly undervalues the work of BMI’s songwriters. Given the unmatched caliber of BMI’s repertoire, our superior market share on radio, and the ever-increasing value that BMI music brings to the radio industry across all its platforms, we believe the RMLC’s proposal falls well short of what is in the best interests of our affiliates.”
Representatives from the RMLC did not respond to a request for a comment on this latest lawsuit.
