ASCAP, RMLC Announce Settlement in Principle Through 2016
New York, NY - Dec 5, 2011 - The Radio Music License Committee (RMLC) and The American Society of Composers, Authors and Publishers (ASCAP) announced a settlement in principle concerning fees payable by American radio stations to publicly perform ASCAP's 8.5 million plus musical works through 2016. The RMLC represents the majority of the nation's radio stations (more than 10,000 radio stations) and ASCAP represents the majority of musical compositions played on the radio today through the creative output of its 425,000 songwriters, composer and music publisher members.
This settlement, when finalized, will cover the seven-year period 2010 to 2016. It would end ongoing Federal Rate Court litigation and provides for a return to a revenue-based fee structure as well as expanded coverage to accommodate the radio industry's newer distribution platforms for reaching listeners by means such as Internet websites, smart phones and other wireless devices. It also greatly simplifies the reporting process and administrative burden through electronic filing.
"This is a gratifying result for the radio industry, which reflects the current realities of our industry and puts the industry back on sound footing insofar as its licensing relationships with ASCAP are concerned," commented RMLC Chairman Ed Christian, CEO of Saga Communications. "We appreciate the good will that ASCAP has demonstrated in working with our industry to get this resolution."
According to John LoFrumento, ASCAP CEO, "The process of building this agreement was based on mutual trust and appreciation, and reflected both sides' clear understanding of the challenges and opportunities we each see for the future. I want to thank the Radio Music License Committee for its creative approach in respecting the value provided by music creators in our negotiations."
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