Radio Music License Committee Files Antitrust Suit Against Global Music Rights PRO
The Radio Music License Committee filed an antitrust lawsuit in U.S. District Court in Philadelphia against the Global Music Rights (GMR) performing rights organization. RMLC said in Friday's complaint (in Pacer) that GMR is seeking licensing rates that are about…
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three times the fees paid by the American Society of Composers, Authors and Publishers and Broadcast Music Inc. ASCAP and BMI now seek higher rates from radio stations, citing the GMR rates as a new benchmark, RMLC said. It sought an injunction (in Pacer) from the court to prevent GMR from charging “monopoly” prices for a license during litigation. A radio station would be forced to pay the higher GMR rates beginning Jan. 1 when songs covered by other PROs will move to GMR's catalog, RMLC said. The committee proposed that GMR be required to submit to a judicial rate-making procedure similar to the consent decrees on ASCAP and BMI rates. The organization settled a similar antitrust case with the Society of European Stage Authors and Composers in 2015. SESAC agreed to engage in binding arbitration with RMLC when voluntary agreement can't be reached (see 1507240049). GMR didn't comment Monday. The lawsuit “is an important proceeding for radio operators to watch as it may determine how much radio broadcasters will have to pay for their music next year, and in the years ahead,” said Wilkinson Barker radio lawyer David Oxenford in a Sunday blog post. “Most radio stations will be paying GMR in addition to ASCAP, BMI and SESAC, but the litigation is important as it may establish how much any station will be paying to these organizations.” The suit “may set a precedent for other music users (including TV and digital music users) who themselves will no doubt face GMR royalty claims in the future,” Oxenford said.