Pandora sued, arguing that music publishers couldn’t make partial withdrawals from BMI and ASCAP, which are bound by decades-old consent decrees with the Department of Justice that determine royalty rates.
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Sony/ATV already tried a partial pullout from the professional-rights organizations, forcing companies like Pandora to negotiate directly for a license to stream music. In July, Sony/ATV Chief Executive Martin Bandier, in a letter to his songwriters, warned that he might withdraw from ASCAP and BMI so he could better fight for higher streaming royalties. The pain is especially acute as CD sales and digital downloads are in decline, while streaming services are the only area of growth. Songwriters complain that BMI and ASCAP are bound by outdated government rules that result in paltry royalties from digital outlets. Sony/ATV Music Publishing - whose catalog includes Beatles classics along with Taylor Swift’s current chart toppers - plans to dump the industry’s oldest and biggest performance-rights organizations by the end of the year, The Post has learned.īypassing BMI and ASCAP, which collect royalties for songwriters when their tunes are played on the radio, streamed online or piped into a store, would allow Sony/ATV to negotiate directly with services such as Pandora, Spotify and YouTube. 1 music publisher has decided to go it alone in the battle to boost digital royalties paid to songwriters. Sony warns profit may drop 30 percent or more this year as demand slowsĪpple reportedly inks deals with major music labels
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Public CommentsĪs part of its review, the Department invites interested persons, including songwriters, publishers, licensees, and other industry stakeholders, to provide the Division with information or comments relevant to whether the Consent Decrees continue to protect competition. The ASCAP Consent Decree was last amended in 2001 and the BMI Consent Decree was last amended in 1994. Both Consent Decrees have been amended since their entry.
Since their entry in 1941, the Department has periodically reviewed the operation and effectiveness of the Consent Decrees, most recently in 2014 - 2015. § 1, to address competitive concerns arising from the market power each organization acquired through the aggregation of public performance rights held by their member songwriters and music publishers.
The Consent Decrees, originally entered in 1941, are the products of lawsuits brought by the United States against ASCAP and BMI under Section 1 of the Sherman Act, 15 U.S.C.
Department of Justice, Antitrust Division has opened a review of the consent decrees in United States v. Antitrust Consent Decree Review - ASCAP and BMI 2015.Antitrust Consent Decree Review - ASCAP and BMI 2014.The American Society of Composers, Authors and Publishers BMI - Final Judgment (November 18, 1994).ASCAP - Second Amended Final Judgment (June 11, 2001).Statement of the Department of Justice on the Closing of the Antitrust Division’s Review of the ASCAP and BMI Consent Decrees (January 15, 2021)