BMI filed an action in Federal Rate Court today to set interim fees for radio stations represented by the Radio Music License Committee while BMI and the RMLC negotiate the terms of a new five-year deal beginning in 2017.
The RMLC proposed an interim rate below BMI's previous deal which could have a significant impact on the royalties BMI pays to its songwriters, composers and music publishers. Because BMI disagrees with the RMLC's proposal it is asking the Court to maintain its most recent rate while new terms are negotiated.
The court action comes in the wake of a Christmas Eve announcement that Irving Azoff's competing PRO Global Music Rights had agreed to an interim license with RMLC stations through September 30, 2017.
"We attempted to negotiate in good faith with the RMLC for many months," Mike Steinberg, Senior Vice President of Licensing for BMI said in a statement, "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."