American Society of Composers, Authors and Publishers (ASCAP) and the Radio Music License Committee (RMLC) announced a settlement in principle concerning the fees U.S. radio stations pay to publicly perform ASCAP's more than 8.5 million plus musical works through 2016.
The settlement covers the seven-year period 2010 to 2016 and will effectively end ongoing Federal Rate Court litigation. The agreement provides for a return to a revenue-based fee structure as well as expanded coverage to accommodate the radio industry's newer distribution platforms including the wesite, smart phones and wireless devices. The new agreement also streamlines the reporting and administrative processes with electronic filing.
"This is a gratifying result for the radio industry, which reflects the current realities of our industry and puts the industry back on sound footing insofar as its licensing relationships with ASCAP are concerned," RMLC Chairman Ed Christian, CEO of Saga Communications said in a statement. "We appreciate the good will which ASCAP has demonstrated in working with our industry to get this resolution."
ASCAP Chief Executive Officer John LoFrumento said in the same statement that, "the process of building this agreement was based on mutual trust and appreciation, and reflected both sides' clear understanding of the challenges and opportunities we each see for the future. I want to thank the Radio Music License Committee for its creative approach in respecting the value provided by music creators in our negotiations."
The RMLC represents over 10,000 radio station while ASCAP represents musical compositions of some 425,000 songwriters, composer and music publisher members.