March 14, 2014

ASCAP Statement on Pandora Rate Court Decision

John LoFrumento

John LoFrumento

New York, NY, March 14th, 2014: Today, Judge Denise Cote issued her decision in the ASCAP rate court proceeding with Pandora, setting a rate of 1.85% for each of the five years of the license term (2011-2015). While Judge Cote’s decision does not fully adopt the escalating rate structure that ASCAP had proposed, it also does not adopt Pandora’s argument that the 1.7% RMLC rate should apply to Pandora.

ASCAP CEO John LoFrumento commented:

“Streaming is growing in popularity – and so is the value of music on that platform. We are pleased the court recognized the need for Pandora to pay a higher rate than traditional radio stations. But recent agreements negotiated without the artificial constraints of a consent decree make clear that the market rate for Internet radio is substantially higher than 1.85%. And today’s decision further demonstrates the need to review the entire regulatory structure, including the decades-old consent decrees that govern PRO licensing, to ensure they reflect the realities of today’s music landscape. That’s why ASCAP remains committed to working with all music industry stakeholders to create a system that preserves the benefit of collective licensing to businesses seeking music licenses, while giving consumers greater access to the music they love and allowing the 500,000 songwriters, composers and music publishers we represent to be compensated for the true value their music brings to the marketplace.”

Note: The decision was filed under seal pending the determination of what (if any) confidential information in the decision should be redacted.

To learn more and join ASCAP's effort to build a stronger future for music, click here.

The American Society of Composers, Authors and Publishers (ASCAP) is a professional membership organization of songwriters, composers and music publishers of every kind of music. ASCAP's mission is to license and promote the music of its members and foreign affiliates, obtain fair compensation for the public performance of their works and to distribute the royalties that it collects based upon those performances. ASCAP members write the world's best-loved music and ASCAP has pioneered the efficient licensing of that music to hundreds of thousands of enterprises who use it to add value to their business - from bars, restaurants and retail, to radio, TV and cable, to Internet, mobile services and more. The ASCAP license offers an efficient solution for businesses to legally perform ASCAP music while respecting the right of songwriters and composers to be paid fairly. With 700,000 members representing more than 11.5 million copyrighted works, ASCAP is the worldwide leader in performance royalties, service and advocacy for songwriters and composers, and the only American performing rights organization (PRO) owned and governed by its writer and publisher members. 

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