Legal Battle Brews over Radio Music Rights: What You Need to Know

If you are a radio broadcaster, you need to be aware of an important legal battle pending between the Radio Music License Committee (RMLC) – the group that has traditionally represented the majority of commercial radio stations in music licensing matters – and Global Music Rights (GMR), a new public-performance-right licensing agency.

RMLC’s current ASCAP and BMI licenses give stations the right to perform most of the works in the GMR repertory, but those licenses expire on Dec. 31. As of Jan. 1, 2017, stations could be subject to substantial copyright infringement penalties for playing the music that has moved from ASCAP or BMI to GMR, which is estimated to account for about 5-7.5 percent of total radio airplay.

GMR differs from ASCAP and BMI as it is a privately-held, for-profit firm. Unlike other performing rights organizations, GMR is not subject to rate regulation that acts to prevent monopoly pricing.

After unsuccessfully attempting to negotiate reasonable rates for the songs represented by GMR, RMLC filed an antitrust suit against the group, alleging that GMR has created and maintained an unlawful monopoly over the works in its repertory.    

RMLC also contends that GMR makes it nearly impossible for stations to know which rights the group holds, meaning a station would have difficulty avoiding playing GMR’s songs if it wanted to. In its lawsuit, RMLC is seeking an injunction that would require GMR to offer temporary licenses on reasonable terms similar to ASCAP and BMI licenses. It is impossible to know if or when the court will issue this injunction.

In response, GMR filed a complaint against RMLC alleging that it represents an unlawful cartel intended to stifle competition among radio stations and drive down public performance fees for radio broadcasts. 

RMLC is continuing to explore negotiations with GMR while the litigation goes forward and emphasizes that every station is free to determine whether it should negotiate a license with GMR directly, attempt to avoid playing any GMR-controlled songs or await the results of the litigation. 

Neither NAB nor RMLC can provide legal advice to broadcasters about whether or how to deal with GMR or navigate around its catalog. Broadcasters should contact their station counsel with any questions. 

RMLC’s correspondence and postings on this matter can be found here. Stations may reach out to the committee by contacting Bill Velez at bill@radiomlc.org.