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# Court Vacates BMI’s 138% Live Concert Licensing Rate Hike
- URL: https://www.hypebot.com/court-vacates-bmis-138-live-concert-licensing-rate-hike/
- Published: 2026-02-25T19:41:02.000Z
- Updated: 2026-02-27T14:15:08.000Z
- Description: An appeals court has invalidated BMI's 2023 138% live concert licensing rate hike calling it "unreasonable" and based on a flawed definition of "gross revenue."
- Author: Bruce Houghton
- Tags: BMI, concert licensing, PRO

The U.S. Second Circuit Court of Appeals Tuesday vacated a 2023 ruling that had **granted BMI in 138% increase** in licensing fees for live performances.

The original decision by U.S. District Judge Louis Stanton had raised the blanket license rate to **0.5% of gross revenue** \- a move BMI then hailed as a historic victory for songwriters. But the appeals court ruled that this rate was "unreasonable" and based on a flawed definition of "gross revenue."

#### **Why the Court Reversed the Decision**

The Second Circuit panel found that the lower court overstepped by expanding the revenue base to include revenue streams that have **"no precedent in the history of the industry."** This included:

- **Secondary market ticket sales** (scalping/resale revenue).
- **VIP packages and box suites.**
- **Service fees** collected by promoters.

The court said that these streams don't accurately reflect the fair market value of the music being performed and impose "significant administrative costs" on promoters without a clear benefit to the creators.

#### **BMI Responds: "Unwavering in Our Belief"**

In its [official response](https://www.bmi.com/news/entry/bmi-responds-to-second-circuit-opinion-on-live-concert-rates?ref=hypebot.com), BMI expressed disappointment with the ruling but noted what it sees as a silver lining: the court confirmed that free market rates should still be considered when setting fees.

BMI pointed out that even the appeals court suggested a range of reasonable rates that would still be **50% to 80% higher** than the historical rates. "We are unwavering in our belief that our songwriters, composers, and publishers deserve more," BMI stated, adding that they are evaluating further appellate options.

#### **What’s Next?**

The case heads back to the Southern District of New York. Judge Stanton has been tasked with recalculating a "reasonable" rate with a clearer justification. 

While the final number will likely be lower than the 0.5% BMI wanted, it is almost certain to remain higher than the old rates, leaving the industry with many unanswered questions.

*Sources:* [*Courthouse News*](https://www.courthousenews.com/second-circuit-vacates-bmi-licensing-rate-hike-for-live-performance-rights/?ref=hypebot.com)*,* [*BMI Statement*](https://www.bmi.com/news/entry/bmi-responds-to-second-circuit-opinion-on-live-concert-rates?ref=hypebot.com)*,* [*Court Opinion*](https://www.courthousenews.com/wp-content/uploads/2026/02/nacpa-bmi-second-circuit-opinion.pdf?ref=hypebot.com)*.*