The fight to pay for what comes out of radio speakers took an interesting turn Wednesday. Months after radio settled a years-long dispute with GMR to play their repertoire of music, and as the industry tries to fend off an attack from musicFIRST to pay artists directly, the RMLC has decided to go after ASCAP and BMI.
On Wednesday, the Radio Music License Committee said it has filed a petition for the determination of reasonable license fees against ASCAP and BMI. They want the case to be heard for both PRO’s in front of one judge.
The organization says it’s invoking a provision under the Music Modernization Act that ends the requirement for claims to go before two different judges. “For years, ASCAP and BMI have each argued to the RMLC that their respective share of music performances on RMLC member stations was larger than the other’s share.” The RMLC wants one judge to address the market share claims.
The Music Modernization Act was signed into law by former President Donald Trump back in late 2018. A move that was praised by ASCAP and BMI. The three main points of The Act were to ensure copyright owners were adequately paid when songs were streamed on services like Spotify, Apple Music and Amazon, close the pre-1972 loophole, and to create a uniform payment process for music producers to receive royalties.
Both ASCAP and BMI were not happy with the RMLC filing. ASCAP CEO Elizabeth Mathews told Radio Ink radio is attempting to pay its songwriters less money. “The litigation is squarely aimed at reducing what powerful RMLC radio stations pay songwriters, who are the lifeblood of the radio industry. The RMLC is weaponizing their market power to punish the songwriters whom it relies upon for its business. ASCAP will vigorously fight for the right of our members to be paid fairly.”
A BMI spokesperson told Radio Ink the radio industry is incorrectly interpreting the Music Modernization Act. “We are astonished that the RMLC has decided to bring an unprecedented joint action against BMI and ASCAP, relying on a gross mischaracterization of the Music Modernization Act. We are also disappointed that the RMLC opted to commence this action rather than engage in negotiations with BMI. We will vigorously oppose the improper joint action and look forward to establishing the significant value of the BMI repertoire to radio before the BMI rate court.”
We also reached out to the NAB last night. A spokesperson for the organization said they are not commenting.
The RMLC says its petition is based on provisions of both the ASCAP and BMI antitrust consent decrees that entitle licensees who are not able to secure a negotiated resolution of ASCAP and BMI license fees to obtain a determination of reasonable license fees from the court. The RMLC is looking for a determination of fees and terms for the license period January 1, 2022 through December 31, 2026.
