The Department of Justice–once again doing its best to crush small business–has appealed the BMI ruling (copy of DOJ appeal here). Yes…she’s baaack….Remember DOJ Antitrust lawyer and ex-Googler Renata Hesse? (aka “Defendant“)
Hesse’s reward for sticking the shiv into songwriters was a partnership with big bucks at the DC Office of Sullivan & Cromwell, aka the gold plated revolving door waiting room where she proudly lists her expertise in “Intellectual Property”. She left out “Destroying Lives of People Who Can’t Fight Back”.
And then of course there’s shiv meister David C. Kully, his bad self, now a partner at Holland & Knight who did Hesse’s dirty work and really did the day to day on fufilling Hesse’s inexplicable obsession with screwing songwriters to the wall. Kully encouraged songwriters to leave ASCAP if they didn’t like the DOJ’s ruling on 100% licensing.
Originally posted on MUSIC • TECHNOLOGY • POLICY: David Lowery, Steve Winogradsky and Chris Castle discuss the implications of the new rule by the U.S. Department of Justice re-interpreting the ASCAP and BMI consent decrees to require 100% licensing and prohibiting partial withdrawal. David Lowery is the founder of Cracker and Camper van Beethoven, leading artist rights…
[Editor Charlie sez: In their hearts, they know they are criminals…Let the RICO games begin!]
After years of catering to copyright holders and their increasing demands, is Google about to go rogue in sheer frustration? According to a report by TorrentFreak, 2017 could well be the year Google throws its toys out of the pram, raises the Jolly Roger and takes to the digital seas in anger by launching its very own mega torrent search engine.
Over the last decade the copyright industry has been baying for pirate blood and have badgered Google for far broader search engine censorship to curb the growing piracy problem. In 2012 alone, Google removed over 50 million pirate search results that were infringing on the copyright holders’ content.
Today, BMI filed an action in Federal Rate Court to set interim fees for radio stations represented by the Radio Music License Committee (the “RMLC”) while BMI and the RMLC negotiate the terms of a new five-year deal beginning in 2017.
The RMLC has proposed an interim rate well below BMI’s previous deal, the effect of which would have a significant impact on the royalties BMI pays to its songwriters, composers and music publishers. The RMLC has justified its proposed rate based upon incomplete and incorrect information regarding BMI’s radio performances. BMI disagrees fundamentally with the RMLC’s proposal and, consistent with past practices, is asking the Court to maintain its most recent rate while new terms are negotiated.
Mike Steinberg, Senior Vice President of Licensing for BMI, stated, “We attempted to negotiate in good faith with the RMLC for many months, and just before the end of the year, the RMLC presented an interim rate that significantly undervalues the work of BMI’s songwriters. Given the unmatched caliber of BMI’s repertoire, our superior market share on radio, and the ever-increasing value that BMI music brings to the radio industry across all its platforms, we believe the RMLC’s proposal falls well short of what is in the best interests of our affiliates.”
When two rational actors are economically interdependent on one another, disputes tend to get solved at a market clearing price. So it is with Global Music Rights and the goliath Radio Music License Committee that itself is a member of the even bigger goliath MIC Coalition. (My bet is that the Google-backed MIC Coalition is behind […]
The proposed merger of AT&T and Time Warner has drawn censure from both sides of the political aisle, as well as a Senate hearing that looked into the potential for the combined company to become a monopoly.
But if we are going to examine media monopolies, we should look first at Silicon Valley, not the fading phone business.
Mark Cuban, the internet entrepreneur, said at the meeting of the Senate Judiciary Antitrust Subcommittee last week that the truly dominant companies in media distribution these days were Facebook, Google, Apple and Amazon.
“Facebook is without question in a dominant position, if not the dominant position, for content delivery,” he said.
Look at the numbers. Alphabet (the parent company of Google) and Facebook are among the 10 largest companies in the world. Alphabet alone has a market capitalization of around $550 billion. AT&T and Time Warner combined would be about $300 billion.
The radio industry is about to learn what many others already have — when you push Irving Azoff, he pushes back. Usually harder.
After nearly two years of negotiations over licensing rates for radio song plays, the Radio Licensing Music Committee (RMLC) recently “ambushed” Global Music Rights (GMR) — the nascent U.S. performance rights organization launched in late 2013 by Azoff, in conjunction with MSG Entertainment and with former ASCAP executive Randy Grimmett at the helm — with an antitrust lawsuit filed in the U.S. Eastern District Court of Pennsylvania on Nov. 18.
That was followed by the filing, on Dec. 6, Daniel Petrocelli and his firm O’Melveny & Myers of an antitrust suit on behalf of GMR against the RLMC in the U.S. Central District Court of California. Petrocelli stresses that the suit is not retaliatory, but was filed to fight the RLMC’s “collusive tactics to depress [the] prices” that radio stations pay songwriters.
Azoff, the legendary artist manager who began GMR because he felt songwriters were getting shortchanged in performance licensing, tells Billboard that he takes “artist rights very seriously. I grew up around guys named Lew Wasserman[former head of MCA, now known as Universal Music Group] and Steve Ross [who created Warner Music Group], who taught me to respect talent. We feel that they [the RMLC] violated respect for talent. We didn’t start this fight, but we aren’t going away.”
The digital music era has seen no shortage of lawsuits over payment for songs — but the latest battle is poised to rock the industry.
Global Music Rights, a boutique performing rights organization, claims the country’s 10,000 radio stations are acting as a cartel to keep payments to songwriters artificially low, according to a complaint filed Tuesday in California federal court.
At the heart of the issue is how songwriters get paid when their music is played on a terrestrial radio station. Here’s how it works: Most rightsholders are represented by either ASCAP or BMI. Those organizations typically license music through “blanket licenses” covering their entire collections. Consent decrees issued by the Department of Justice decades ago in an effort to avoid antitrust issues require ASCAP and BMI to give a license to anyone who’s willing to pay for one.
Music industry heavyweight Irving Azoff launched GMR in 2013 in an effort to give elite songwriters another option and, hopefully, more money.
While GMR boasts songwriters behind hits by artists including John Lennon, Kenny Chesney and Drake, its roster of about 70 clients and 26,000 works pales in comparison to the combined 22 million compositions held by ASCAP and BMI — according to the complaint, that is by design.
“GMR has not accumulated and has no intention to amass the market power that other PROs have wielded,” writes attorney Daniel Petrocelli. “By keeping its catalog small and high-quality across the board, GMR is able to provide personalized customer service to its songwriters and keep the cost of those services low.”
GMR is now suing the Radio Music License Committee because it claims the group is ensuring there is no competition among radio stations in order to stifle the rates they pay to license songs.
“RMLC’s member stations are competitors,” writes Petrocelli. “Yet these ‘competitors’ created and actively participate in a ‘committee’ whose very purpose is to negotiate with PROs as a group and destroycompetition among them in the acquisition of performance license rates.”