ASCAP Optimistic on Consent Decree, Lobbies Capitol Hill on Songwriter Equity Act

American Society of Composers, Authors and Publishers (ASCAP) executives and members lobbied on Capitol Hill Wednesday for a revamp of music licensing laws, particularly those that affect its 1941 consent decree with the DOJ. Justice is reviewing both its ASCAP and Broadcast Music, Inc., consent decrees. ASCAP and DOJ also recently reached a proposed settlement that would end the department's investigation into whether ASCAP violated its consent decree by signing 150 exclusive contract (see 1605120049). ASCAP believes the U.S. District Court in New York will rule by mid-June on the proposed settlement, which “makes us more optimistic that the DOJ will be able to focus on our specific request” for an update to the PRO's consent decree, said CEO Elizabeth Matthews in an interview. “They wanted to get these issues out of the way first.” The rules that ASCAP operates under “are terribly outdated and we're working with [DOJ] to get them updated,” ASCAP President Paul Williams told us. “What we want from the Hill is for them to understand that the way the consent decree is scripted is absolutely broken.” ASCAP is processing “a huge amount” of royalty requests but “the value of music has come down,” Williams said. “It needs to come back up, and one of the ways we want to do that” is to seek a revamp of rules for the Copyright Royalty Board, which ASCAP and other performing rights organizations use to settle licensing disputes, via the Songwriter Equity Act (HR-1283/S-662). The bill would amend Sections 114 and 115 of the Copyright Act to allow the CRB to consider “all relevant evidence” when determining royalty rates and would change the rate standard for mechanical royalties. BMI, NMPA, Recording Academy and several conservative groups have strongly backed HR-1283/S-662 since Sen. Orrin Hatch, R-Utah, and House IP Subcommittee Vice Chairman Doug Collins, R-Ga., reintroduced the bill last year.