The Radio Music License Committee is pursuing songwriter royalties that either stay the same or shrink, which has led to its legal action on May 17, bringing BMI to rate court for failing to agree to those terms. The RMLC also submitted data estimating market share, further arguing that BMI rates should be reduced, a statistical argument BMI looks forward to disputing.
In the meantime, an agreement has been in effect providing temporary rates while the two sides have been unable to settle on the final numbers.
The court proceeding to suppress songwriter pay took place just two days after the May 15 Senate Judiciary Committee hearing on legislative reforms that would do the opposite—usher in a new, fairer era for songwriters and all music creators. The hearing focused on the Music Modernization Act, the Senate version of the MMA bill that has already passed the U.S. House of Representatives. As its name indicates, this much needed legislation will modernize the music licensing, royalties and payments ecosystem. Included in that for songwriters is the provision for rate court judges to be able to consider market rates when setting certain royalty amounts.
As Congress, moves forward with a new era of music licensing, the RMLC clings to past preferential treatment. In a recent analysis of RMLC's pursuits, attorney and blogger David Oxenford focused on SoundExchange data in particular, regarding market-rate determination. Oxenford points out radio has already received a protective shield from SoundExchange information influencing broadcast rates. This is for an industry that still hides behind its antiquated exemption from recognizing performance right compensation for musicians, like the rest of the world does. Although the pending MMA copyright reform bill would make changes to rate court procedure, the changes are not immediately dramatic. The whole system is also vulnerable to Department of Justice reconsideration of the antiquated consent decree framework, which is why the U.S. District Court for the Southern District of New York is hearing broadcast royalty rate arguments in the first place.
Meanwhile the RMLC's foot-dragging makes clear that passage of the Music Modernization Act this year, now pending in the Senate, is reform for which the time has come. The fight in rate court will be tedious and expensive. The future of music licensing, on the other hand, is exciting, but now is the time to make our voices heard on behalf of sensible reforms supported by all stakeholders.
Contact Your Senators: Tell Them To Support Comprehensive Music Reform
