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HomeEntertainmentMusicBMI Wins Rate Court Ruling to Get Songwriters Paid 138% More From...

BMI Wins Rate Court Ruling to Get Songwriters Paid 138% More From Live Events

BMI loved a double win Tuesday (March 28) in a federal charge court docket choice that can improve the royalties the efficiency rights organizations’ songwriters earn at dwell occasions.

The federally adjudicated choice in BMI’s charge case towards Live Nation, AEG and the North American Concert Promoters Association (NACPA) awarded a 138% improve in charge to 0.5% of the occasion’s income. It additionally expands that income base to incorporate a lower of live performance corridor VIP packages and field suites, tickets bought on to the secondary market and servicing charges obtained by the promoters.

Previously, the income definition solely mirrored earnings straight from the face worth of major market ticket gross sales.

The charge and expanded income base applies to the interval of mid-2018 via Dec. 31, 2022.

On the flipside, Southern District of New York Judge Louis Stanton, who handed down the speed court docket choice, rejected BMI’s try to ditch the historic 10% low cost price that the commerce group and its promoters get for serving to to manage the license on behalf of BMI. As effectively, BMI’s effort to broaden the income base to additionally embrace sponsorship and promoting income was additionally rejected.

“This is a massive victory for BMI and the songwriters, composers and publishers we represent,” BMI president Mike O’Neill mentioned in an announcement. “It will have a significant and long-term positive impact on the royalties they receive for the live concert category.  We are gratified the Court agreed with BMI’s position that the music created by songwriters and composers is the backbone of the live concert industry and should be valued accordingly. Today’s decision also underscores BMI’s continued mission to fight on behalf of our affiliates, no matter how long it takes, to ensure they receive fair value for their creative work.”

“We advocated on behalf of artists to keep their costs down, and managed to hold the increase to less than 1/3 of BMI’s proposed increase,” mentioned a Live Nation spokesperson in an announcement. “This will cost the performers we work with approximately $15 million a year spread out over thousands of artists, and cost increases for Live Nation directly are not material.”

Prior to this choice, BMI and the dwell live performance business have been working underneath a license negotiated in 1998 that was renewed twice via June 30, 2013. That settlement known as for promoters to pay a efficiency licensing charge of 0.3% of income for live performance venues with underneath 10,000 seats, and 0.15% of income for venues with over 10,000 seats. That charge, and the income definition that solely coated major market ticket gross sales, additionally served because the interim charge till this choice got here down in the present day.

AEG didn’t reply to quick requests for remark. The NACPA couldn’t be reached for remark.



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