US performance rights organization BMI has filed a rate court action against SiriusXM to determine what it says are “fair and appropriate fees for a license” with the satellite radio service.
In the petition, filed in a New York court today (September 12) and obtained by MBW, BMI notes that it licenses the public performance rights in the United States of over 22.4 million songs and compositions.
It adds that it operates pursuant to a Consent Decree and points to Article XIV(A) of the Consent Decree, which the PRO says “requires BMI to quote music users what BMI deems to be reasonable fees and terms for requested licenses”.
BMI’s filing explains that, “if BMI and a music user are unable to agree on license fees and terms, either party can petition this Court to evaluate the reasonableness of BMI’s rate quote and, if necessary, set the reasonable fee and terms”.
The PRO explains further that, in May 2023, it quoted to Sirius XM “the fee and principal terms BMI deemed reasonable” for a BMI license for the period January 1, 2022 through December 31, 2026.
However, BMI and SiriusXM “have been unable to agree to final terms”, the filing added.
BMI says in the court filing, which you can read here, that it has submitted its petition “for a determination that the rates it quoted for the license requested by SiriusXM are reasonable or, in the alternative, for an order setting reasonable rates for SiriusXM’s public performance of songs in the BMI repertoire”.
BMI claimed in a press statement today (September 12) that “despite years of negotiations”, SiriusXM is “attempting to lower its payments to BMI songwriters, composers and publishers.”
The statement added that SiriusXM is “ignoring BMI’s preeminent market share, changes in the marketplace, SiriusXM’s product evolution towards a digital service, and the company’s strong revenue growth”.
BMI added in its statement that its “songwriters and composers should not have to accept an outdated rate that significantly undervalues their music, which provides the very foundation for SiriusXM’s programming”.
BMI’s action against SiriusXM today follows last year’s news that the PRO beat a rate court dispute against live events promoters Live Nation, AEG, and the North American Concert Promoters Association (NACPA).
That victory saw songwriters getting a 138% increase in royalties in the US to 0.5% of every live event’s revenue.
BMI emerged victorious in the dispute after New York District Court Judge Louis Stanton ruled in favor of the company’s proposed 0.5% rate for gross ticket sales in the US, including retroactive rates for the 2013-2017 period.
The decision was hailed by BMI as a significant milestone.
“This is a massive victory 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 for the live concert category,” BMI CEO and President Mike O’Neill said at the time.
“After attempting to negotiate with SiriusXM in good faith for more than two years, we were compelled to file this action given their insistence on underpaying the creators of the music that drives the majority of their business.”
Mike O’Neill, BMI
Commenting on the action against SiriusXM, Mike O’Neill, said: “After attempting to negotiate with SiriusXM in good faith for more than two years, we were compelled to file this action given their insistence on underpaying the creators of the music that drives the majority of their business.
“SiriusXM’s proposal is a clear attempt to rely on a rate that was established when the company was very different in terms of its size, reach, degree of digital focus and revenue growth, and falls well below what is in the best interests of our affiliates.
“We will continue to fight for fair and appropriate rates when we believe the music created by our songwriters and composers is being significantly undervalued.”
“Digital radio payments to songwriters and music publishers have been a huge problem for many years.”
NMPA President & CEO David Israelite also commented on the news today. He said in a statement: “Digital radio payments to songwriters and music publishers have been a huge problem for many years.
“We are extremely pleased that BMI has taken the largest satellite radio company in the world to court to demand what’s fair. Today, record labels and artists receive from digital radio significantly more than songwriters on a model that has historically valued them equally.
“Labels and artists are not paid too much. Songwriters and publishers are not paid enough. That’s why for years we have called to lessen the ‘Digital Radio Divide.’
“Companies like SiriusXM have massive profit margins fueled by music creators. We fully support BMI in their fight for the value of songs.”
