Last week, ASCAP took a blow in their battle against Pandora. The court rejected ASCAP’s royalty rate appeal, leaving ASCAP’s rate at 1.85 percent of Pandora’s revenue.
BMI, ASCAP’s archrival performance royalty organization, is having better luck.
A New York Rate Court ruled on a lawsuit filed by BMI back in 2013.
BMI’s royalty payout from Pandora will be raised to 2.5 percent from 1.75 percent. The court said 2.5 percent is “reasonable, and indeed at the low end of the range of fees of recent licenses.”
BMI’s President and CEO, Mike O’Neill, said: “Today is an important day for BMI and a huge victory for the more than 650,000 songwriters, composers and publishers we have the privilege to represent”.
Pandora had argued for a rate even lower than 1.75 percent. They say that they’ll appeal the ruling
Nina Ulloa covers breaking news, tech, and more: @nine_u
Image by Prabhakaran, licensed under Creative Commons Attribution 2.0 Generic (CC by 2.0).