YouTube: Please Pay ASCAP $1.6 Million

YouTube has recently been ordered to pay ASCAP (American Society of Composers, Authors and Publishers) $1.6 million, an interim payment ahead of a final royalty resolution.

The decision, first discussed by legal reporter Law360, also includes an ongoing, $70,000-per-month fee.

The $1.6 million covers fees from 2005, and the $70,000-per-month retroactively begins January 1st, 2009.  The payout structure, issued by Judge William C. Conner of the US District Court for the Southern District of New York, comes ahead of a full trial determination.  Both parties submitted widely-divergent requests, and Connor essentially forged a middle ground.

The interim order follows an April, 2008 royalty decision involving ASCAP, Yahoo, AOL, and RealNetworks, one covering both on-demand and non-interactive streams between 2002 and 2009.  Specifically, the providers were saddled with a 2.5 percent rate on applicable streaming revenues, a cut potentially reaching $100 million.

Story by news analyst Alexandra Osorio.