US performing rights group BMI has filed rates court action against SiriusXM to determine what it says is a “fair and appropriate license fee” for the satellite radio service.
In a petition filed in a New York court today (September 12) and obtained by MBW, BMI notes that it has authorized more than 22.4 million Songs and works.
It added that it was operating under a consent order, noting Article 14(A) PRO stated that “BMI is required to quote music users a fee that BMI deems reasonable and the terms for requesting permission.”
BMI’s document explains that “if BMI and music users cannot agree on licensing fees and terms, either party may request the court to evaluate the reasonableness of BMI’s offer and, if necessary, set reasonable fees and terms.”
PRO further explained that in May 2023, it cited to Sirius XM “fees and principal terms that BMI considered reasonable” for the BMI license during that period From January 1, 2022 to December 31, 2026.
However, the filing added that BMI and SiriusXM “were unable to agree on final terms.”
BMI said in court documents that the company has filed a petition “requesting a determination whether the rates it quoted for the license it requested for SiriusXM are reasonable or requesting an order setting reasonable rates for SiriusXM” for the public performance of BMI’s tracks. song”.
In a press statement today (September 12), BMI claimed that “despite years of negotiations,” SiriusXM is “trying to reduce the fees it pays BMI songwriters, composers and publishers.”
The statement added that SiriusXM “ignores BMI’s superior market share, market changes, the evolution of SiriusXM’s products into digital services and the company’s strong revenue growth.”
“Songwriters and composers should not accept outdated prices that severely undervalue their music, which underpins SiriusXM’s programming,” BMI added in a statement.
BMI’s action against SiriusXM today follows news last year that PRO had prevailed in a rates court dispute against live event promoters Live Nation, AEG and the North American Concert Promoters Association (NACPA).
The win increases the songwriter’s U.S. royalties by 138%, accounting for 0.5% of revenue per live event.
BMI won the dispute when New York District Court Judge Louis Stanton ruled in favor of the company’s proposed tax rate of 0.5% on total U.S. ticket sales, including a retroactive rate for the period 2013-2017.
BMI hailed the decision as an important milestone.
“This is a huge win for BMI and the songwriters, composers and publishers we represent. It will have a significant and long-term positive impact on the royalties they receive in the live concert category,” said BMI Chief Executive Officer and President Mike O’Neill said at the time.
“After more than two years of trying to negotiate in good faith with SiriusXM, we are forced to file this lawsuit because they insist on paying less to the creators of the music that drives much of their business.”
Mike O’Neill, BMI
Commenting on the lawsuit against SiriusXM, Mike O’Neill said: “For more than two years, we have tried to negotiate in good faith with SiriusXM, but given their insistence on promoting music creation, The buyer paid less and we had to file this lawsuit.
“SiriusXM’s proposal was clearly an attempt to rely on rates set at a time when the companies were very different in terms of size, coverage, digital focus and revenue growth, and was well below what was in the best interests of our affiliates. .
“We will continue to fight for fair and appropriate prices when we believe the music created by our songwriters and composers is grossly undervalued.”
“Paying songwriters and music publishers for digital broadcasts has been a big issue for years.”
David Israelite, NMPA
NMPA President and CEO David Israelite also commented on the news today. He said in the statement: “Paying songwriters and music publishers for digital broadcasts has been a big issue for years.
“We are absolutely delighted that BMI is taking the world’s largest satellite radio company to court and demanding justice. Today, labels and artists receive far more from digital radio than songwriters, and the model has historically valued them equally.
“Record labels and artists aren’t paid well. Songwriters and publishers aren’t paid enough. That’s why we’ve been calling for years to close the “digital radio gap.”
“Companies like SiriusXM have huge profit margins driven by music creators. We fully support BMI’s fight for song value.
