Court Rules that Pandora Has to Give BMI More Money…

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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).

7 Responses

  1. Versus

    Why the discrepancy in outcomes? Shouldn’t BMI and ASCAP results be the same?

  2. Doesn't matter

    Now my royalty check will be $5 instead of $3. Yayyyyy

  3. matthew king kaufman

    this is why we need some new legislation

  4. small labe1

    Why a judge decides these rates in the first place is disgusting..

  5. Johnny

    The entire system has been designed to benefit .. profiteering conspiracies or organized crime at the expense of individuals, same thing ………….. fairness and justice do not exist in number racket manuals ………… so why then even opt into such an corrupt system , of course THIS IS NOT A JUST AND FAIR GAME for any mindset following a line of well sequenced and rational thinking

  6. Leon

    2.5% of a billion dollars sounds great. More than fair for a company that merely administers for writers who have published works paid for and invested in by record labels. The ones getting around 50% of that billion in case any one forgot.

    If any writers out there have a problem with this percentage, take your argument to the labels and administrators. They’re the ones with the broken unfair system if its any one.