ASCAP, Radio Music License Committee Reach 5-Year Agreement on Royalty Rates

The American Society of Composers, Authors and Publishers and the Radio Music License Committee (RMLC) said Thursday they reached agreement on the royalty rate for ASCAP's recording repertory that RMLC member broadcasters must pay over the next five years. The agreement, which takes effect Jan. 1 and runs through 2021, sets unspecified increases in the rates for both terrestrial and digital performances of ASCAP members' music, the parties said. The agreement also “expressly affirms the percentage share of radio performances represented by ASCAP -- at a level that reflects that ASCAP licenses more performances on broadcast radio than any other performing rights organization" (PRO), ASCAP said. The new agreement “will provide enhanced financial benefits to ASCAP songwriters, composers and music publishers at a time of tremendous disruption in the music industry,” said ASCAP CEO Elizabeth Matthews in a news release. RMLC Chairman Ed Christian in the news release said: “The increase in ASCAP fees is consistent with ASCAP's established spin share on radio.” A legal battle is ongoing between RMLC and the PRO Global Music Rights in which both parties are making antitrust claims. RMLC claimed in its lawsuit in the U.S. District Court in Philadelphia that GMR's higher licensing rates were prompting ASCAP and Broadcast Music Inc. themselves to seek higher rates from radio stations (see 1611210011 and 1612090062).