What's Happening?
ASCAP and the Radio Music License Committee (RMLC) have settled their lawsuit concerning the licensing rates paid by thousands of radio stations. This agreement follows a similar settlement between BMI and RMLC. While the specific terms of the ASCAP deal were not disclosed, it is reported to include year-over-year increases in the blanket license rate for nearly 10,000 stations. The settlement aims to better reflect the current broadcasting methods of AM/FM radio stations and distinguish between terrestrial radio and internet music services. The lawsuit, filed in June 2022, was part of a broader legal strategy enabled by the Music Modernization Act, which sought to address rate-setting for both ASCAP and BMI.
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Why It's Important?
The settlement is crucial for ASCAP's members, ensuring a stable and enhanced royalty stream for songwriters, composers, and publishers. It highlights the ongoing evolution of the music licensing landscape, as traditional radio adapts to new broadcasting technologies and consumer habits. For radio stations, the agreement provides financial certainty and helps avoid the complexities of litigation. The outcome of this case, alongside the BMI settlement, could influence future negotiations and the overall structure of music licensing in the U.S., impacting how music creators are compensated.
What's Next?
The radio industry will need to adapt to the new licensing rates, which may affect their operational budgets and programming decisions. The details of the ASCAP agreement, once disclosed, will be closely analyzed and compared to the BMI settlement. This could lead to further discussions and adjustments in the music licensing framework, potentially affecting other performance rights organizations and broadcasters.
