BMI Withdraws Interim Fee Petition

0

Both the RMLC and BMI have agreed that, while they continue to negotiate or pursue a litigated resolution of license fees for January 1, 2017, RMLC stations will pay BMI interim fees at the same (1.7%-of-net-revenue) rates that applied under the most recent BMI license that expired on December 31, 2016.

The petition was filed when BMI and RMLC were unable to reach an agreement on an interim fee; BMI says the RMLC’s request for a lower rate was “based on incorrect and incomplete information.” At a hearing on February 17, the RMLC agreed that the 7,000 stations it represents would pay BMI’s proposed interim rate, and so the petition has been withdrawn.

RMLC has taken the position with BMI that the final fees for the license term starting January 1, 2017 should be reduced from the pre-existing rate, as evidence indicates that BMI’s share of performances on radio is less than ASCAP’s and warrants a rate below 1.7%. And rather than engage in costly litigation to try to lower the interim rate, the RMLC determined that its efforts were better directed at proceeding as soon as possible to demonstrate that BMI’s market share calls for a lower final fee, which will be retroactive to January 1, 2017 (and, thus, result in a fee credit to stations assuming the RMLC prevails in establishing a lower rate).

BMI SVP/Licensing Mike Steinberg said, “We are pleased that the RMLC recognized the value that BMI music brings to the radio industry across all of its platforms and agreed to BMI’s proposed interim rate. Protecting the income of BMI’s songwriters, composers, and music publishers is of paramount importance, and we will continue to pursue a new final rate that reflects current and future marketplace data and is in the best interests of our affiliates.”

The interim rate covers fees starting January 1, 2017 and until a final fee is set.

LEAVE A REPLY

Please enter your comment!
Please enter your name here