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Radio

The ASCAP Radio License means access to every variety of music you need to attract and entertain your listeners. Each of our licensees has access to over 8.5 million works from over 450,000 ASCAP songwriters, composers, and publishers from over 90 affiliated societies from all over the world. An ASCAP License also allows our licensees to obtain new music as soon as it is written or published.

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ASCAP AND RMLC AGREEMENT

On Friday, January 27, 2012, U.S. District Judge Denise Cote approved the agreement reached between ASCAP and the Radio Music License Committee (RMLC) on a new industry-wide license agreement covering the period January 1, 2010 – December 31, 2016 (“2010 Radio Station License Agreement”). The parties’ agreement ends the pending Rate Court litigation; provides for a return to a revenue-based fee structure; and expands the scope of ASCAP’s license to accommodate the radio industry’s evolving distribution platforms including Internet websites, smart phones, and other wireless devices (“new media uses”), and HD/Multicasting radio channels.

The 2010 Radio Station License Agreement is being offered to all eligible stations that are either represented by the RMLC or have agreed to be bound by the terms of the ASCAP/RMLC agreement. The principal features of the new license agreement are set forth below, with links to the new license agreement, Judge Cote’s Final Order and FAQ’s.

2010-2011 Interim Fees Finalized.
The agreement provides that interim fees paid during 2010 and 2011 are now final, subject to $75 million in credits attributable to those years. These credits will be allocated to stations in annual $15 million installments from 2012 through 2016 in the following manner:

For each of the years 2012 and 2013, each licensee (or the entitled successor to a licensee) that does not owe substantial fees to ASCAP during the 2010-2011 period will receive its pro-rata share of the annual $15 million reduction. That share will be determined in accordance with the following formula:

Station Share of Annual Reduction = (Station Combined 2010-2011 Interim Fees divided by Combined 2010-2011 Interim Fees For All Stations) multiplied by $15 million

For the years 2014-2016, stations eligible for a share of the remaining annual $15 million reductions will be those that paid ASCAP either combined 2010-2011 interim blanket license fees in excess of 1.7% of revenue subject to fee (as defined in the 2010 Radio Station License Agreement) or combined 2010-2011 interim program period base license fees in excess of 0.2958% of revenue subject to fee. This calculation shall be made using each Licensee’s 2012 revenues which are to be reported to ASCAP by April 1, 2013 (as proxy for 2010-2011 revenue). Each such station’s annual share of the reduction will be determined by the following formula:

Station Share = (Amount of Station “Overpayment” in Relation to Applicable 1.7%/0.2958% Benchmark divided by Total “Overpayments” by All Entitled Stations) multiplied by $15 million

Final Fees for 2012-2016.
For the years 2012 through 2016, stations electing to operate under a blanket license will pay 1.7% of gross revenue less a standard deduction of 12% for terrestrial analog and HD/multicasting broadcasts, and a 25% standard deduction for new media uses. Stations operating under a per program, or “program period,” license and that have no performances of feature ASCAP music will pay a fee of 0.2958% of gross revenue less the same standard deductions. Supplemental fees for program-period stations will be consistent with those required under the 2004-2009 license agreement.

2012 On-Account Payments.
The agreement provides for an immediate nearly 30% reduction in stations’ on-account payments for 2012 reflecting a combination of (a) the ratio of estimated aggregate industry fees for 2012 under the new Agreement to aggregate industry interim payments in 2011 and (b) application of the first $15 million credit towards the total $75 million to be credited the industry (assuming that a station is not in arrears as to ASCAP fee payments). The portion of these on-account payments that reflects an estimate of 2012 station fees at the level of 1.7% of gross revenue for stations operating under a blanket license, and at the level of 0.2958% for stations operating under a program period license, less the agreed-upon deductions, will be subject to adjustment as of April 2013 based on stations’ timely submission to ASCAP of reports of their 2012 revenue.

INFORMATION OR QUESTIONS.
Should you have any questions concerning the terms of this agreement, please feel free to contact the Radio Music License Committee c/o Bill Velez, Executive Director. Phone: (615) 844-6260 email: info@radiomlc.org