Did you know Broadcast Music Inc (BMI) and internet radio provider Pandora have been having issues? According to the performing rights organization (PRO), today, June 13, 2013, BMI filed a lawsuit against Pandora, requesting the Federal Rate Court set royalty fees for Pandora on behalf of over half a million musical artists, songwriters, music publishers, and composers. As you may know, previous negotiations with Pandora have not resulted in an agreement between the two companies, and this new action directly asks for the court to mandate fees for Pandora.
During negotiations, Pandora began negotiations of another kind–to purchase the radio station KXMZ-FM, based out of Rapid City, South Dakota. Many argue that this move was done in order for Pandora to avoid paying higher royalties to the PROs (last year they paid 4.1 percent of their total revenue). Pandora has so far achieved this loophole because the recently acquired radio station qualifies them for Radio Music Licensing Committee (RMLC) agreements with royalties and public performances of musical works.
Source: Music Row “BMI Files Suit Against Pandora”
Image Credit: Metal Insider
