BMI Files Lawsuit Against Pandora Over Royalty Fees, Radio Station "Stunt"
June 14, 2013 1:28 PM
comment(s) - last by
BMI thinks Pandora is trying to be crafty with its recent radio station purchase in South Dakota
Broadcast Music Inc. (BMI) has sued
Internet radio company Pandora
for trying to lower the royalty rates it pays by buying a small radio station.
BMI filed the lawsuit at the U.S. Southern District Federal Court in New York yesterday. It's even seeking help from a federal rate court, which will decide how much Pandora will pay BMI members in royalty rates.
This situation stemmed from Pandora's purchase of a small radio station -- KXMZ-FM -- located in Rapid City, South Dakota. Pandora announced the purchase just two days before BMI launched the lawsuit.
BMI is accusing Pandora of buying the radio station so that it can enjoy the reduced royalty rates that terrestrial radio broadcasters receive. BMI gives terrestrial radio stations a bit of a break because of the higher fees these stations pay for on-air broadcasts. BMI said Pandora, on the other hand, is
primarily an Internet service
and shouldn't qualify for the discount that terrestrial radio stations receive just because it bought one tiny radio station in South Dakota.
"The action asks the court to set reasonable, market driven fees for Pandora after negotiations did not result in an agreement," said BMI. "BMI represents the public performance copyright interest of its affiliates when their works are played across all venues including the internet, cable, broadcast television and radio, satellite and in nightclubs, bars and other commercial establishments.
"This is the first time the organization has resorted to litigation on fees in the digital arena in the 18 years since it signed the first music industry copyright license for the performance of music on the internet."
BMI and Pandora had an agreement from 2005 to 2012. The contract ended October 2012, and when BMI sought a new contract, Pandora declined. BMI was looking for higher royalty rates due to the growth of online music streaming and market rates. Also, other music publishers -- such as Sony ATV Music Publishing -- left BMI last year to strike a deal with Pandora, leaving BMI with even less cash in its pocket. Sony reportedly got 25 percent more money with Pandora than it was receiving through BMI.
Around the time of the contract termination with BMI last year, Pandora also went to a federal rate court to drop the amount it owes to the American Society of Composers, Authors and Publishers (ASCAP).
"We look forward to the court's oversight of this matter," said Pandora spokeswoman Mollie Starr.
This article is over a month old, voting and posting comments is disabled
6/14/2013 1:38:38 PM
The discounts that rightsholders give radio stations is just another example of big business trying to keep the status quo by unfairly penalizing new entries in a market.
This sort of anti-competitive behavior needs to go away. It's certainly not the sort of thing that deserves to be protected by law. That would be like giving discounts to horse salesmen to force car companies out of business.
6/14/2013 11:48:36 PM
The solution begins by ending lobbying - it is the source of all this bogus legislation.
"And boy have we patented it!" -- Steve Jobs, Macworld 2007
Pandora Unleashes Completely Revamped Website, Drops 40-hour Cap
September 21, 2011, 1:35 PM
Tech's Biggest Loser on Tax Day: eBay Pays Nearly 99 Percent Tax Rate
April 15, 2015, 3:28 PM
Death and Dragons -- Report Claims Game of Thrones Hit by Piracy "Tidal Wave"
April 10, 2015, 8:37 AM
Court Blocks Twitter and YouTube in Turkey After Pro-Communist Attack in Istanbul
April 6, 2015, 10:53 AM
In Graphics and Quotes: $10.4 Billion Charter & Bright House Merger
April 2, 2015, 5:19 PM
WSJ Report Implies That Google Leveraged Lobbying to Kill Antitrust Abuse Probe
March 25, 2015, 5:37 PM
Nationalist Hackers From Turkey Cause Chaos, Deface Dozens of Sites
March 16, 2015, 12:29 PM
Most Popular Articles
Windows 10 Build 10056 -- What's New in the Latest Leak
April 13, 2015, 10:38 PM
TSMC Hypes Its Upcoming 10 nm Process, Amid Struggles to Hit Volume at 16 nm
April 10, 2015, 7:57 PM
Sharp Unveils World's First "4K" Phone Display at Mind-Boggling 806 PPI
April 13, 2015, 11:24 AM
In California Hippies, Religious Right Find Common Enemy in Vaccine Science
April 9, 2015, 4:42 PM
Editorial: TinEye is an Essential Search Engine That Too Few Know About
April 14, 2015, 10:58 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information