Last week, shockwaves ran through the US music publishing industry after the Department Of Justice refused to change key elements of the market’s consent decrees.
Alongside UMPG and Warner/Chappell, Sony/ATV, Kobalt and others have been calling for publishers to be allowed to negotiate their US digital rights outside of the blanket licences offered by the territory’s two biggest PROs, ASCAP and BMI.
The DoJ officially stonewalled that request, additionally ruling that both ASCAP and BMI must accept 100% licensing – meaning that if a licensee clears a track with one writer, it doesn’t need to bother doing so with his or her co-writers or co-publishers.
“100 percent licensing will lead to unfair prices that do not reflect the true value of the music that our songwriters create.”
jody gerson, umpg
Gerson said the decision is not in the interest of songwriters, “because 100% licensing will lead to unfair prices that do not reflect the true value of the music that our songwriters create.”
She warned of “unfair practices” that may arise as a result, adding: “It will also provide a disincentive to songwriters to work with fellow writers who are signed with a different PRO.”
Gerson said the consent decrees, that haven’t been updated in over a decade, “badly need to be modernised for today’s market.”
She continued: “We believe that the DOJ’s decision is bad for songwriters and we are deeply disappointed.
“As we learn more, we will update you further but as always our response will remain grounded in our fundamental approach to our business and our songwriters.”
In an open letter to Warner/Chappell songwriters, Platt said the DoJ’s refusal to change key elements of consent decrees is “hugely disappointing”.
“THIS DETERMINATION IS COMPLETELY INCONSISTENT WITH THE MANNER IN WHICH ASCAP AND BMI HAVE ISSUED PUBLIC PERFORMANCE LICENSES AND THREATENS TO UNDERMINE THE VERY SYSTEM BY WHICH SONGWRITERS HAVE, FOR MANY YEARS, BEEN COMPENSATED FOR THE PUBLIC PERFORMANCE OF THEIR SONGS.”
JON PLATT, WARNER/CHAPPELL
His open letter reads: “This determination is completely inconsistent with the manner in which ASCAP and BMI have issued public performance licenses and threatens to undermine the very system by which songwriters have, for many years, been compensated for the public performance of their songs.
“It is especially alarming that the DOJ has come to this determination despite the overwhelming concerns expressed by ASCAP, BMI, NMPA, publishers, songwriters and even the US Copyright Office.
“In January, the Copyright Office advised that: ‘Such an approach would seemingly vitiate important principles of copyright law, interfere with creative collaborations among songwriters, negate private contracts, and impermissibly expand the reach of the consent decrees.’”
The DOJ is providing a one-year grace period for the industry to adapt to its new interpretation of the consent decrees.
During that time, Platt told writers that Warner/Chappell will be working on their behalf, independently and with ASCAP, BMI and NMPA, “to explore all available strategies to preserve and grow your public performance revenue in the face of the DOJ’s unfortunate determination.”
He concluded: “At Warner/Chappell, the DOJ’s actions have only strengthened our resolve to find new revenue opportunities for our songwriters.
“As we move forward, we will keep you informed and we may ask you to lend your support to our efforts.”
Gerson also addressed the current artist-led campaign across the US and Europe calling for drastic changes to the way YouTube operates when it comes to licensing.
“I am heartened by the music community’s recent unity on the effort to end the “value grab” and win fair compensation for creators,” she said.
“Over the past couple of weeks, more than 500 US artists and more than 1000 European artists, along with publishers and indies and majors and many more, urged Congress and the European Union, respectively, to address this problem.
“If we are to make progress on the challenges we face as an industry, we must have this kind of unity.”
Jon Platt’s Letter to songwriters in full
Dear Songwriters,
As you may be aware, for the last two years, ASCAP and BMI have been in discussions with U.S. Department of Justice (DOJ) regarding the decades-old consent decrees that govern ASCAP’s and BMI’s licensing practices. The objective was to have the consent decrees amended and updated in order to make them more responsive to today’s fast-moving, and increasingly digital, music business. However, in a hugely disappointing decision, the DOJ has declined to implement any of the changes requested by ASCAP and BMI.
But what’s more, the DOJ has determined that the consent decrees require ASCAP and BMI to license their repertoire on a 100% basis. This means that any licensee would be able to obtain a license for 100% of any song from ASCAP or from BMI, even if that society only controls a small portion of the song. This determination is completely inconsistent with the manner in which ASCAP and BMI have issued public performance licenses and threatens to undermine the very system by which songwriters have, for many years, been compensated for the public performance of their songs. It is especially alarming that the DOJ has come to this determination despite the overwhelming concerns expressed by ASCAP, BMI, NMPA, publishers, songwriters and even the U.S. Copyright Office. In January, the Copyright Office advised that: “Such an approach would seemingly vitiate important principles of copyright law, interfere with creative collaborations among songwriters, negate private contracts, and impermissibly expand the reach of the consent decrees.”
Our loyalty – first and foremost – is always to you, our songwriters. Our understanding is that, because there are so many unanswered questions and implementation challenges, the DOJ is providing a one-year grace period for the industry to adapt to the DOJ’s new interpretation of the consent decrees. We are and will be working on your behalf, independently and with ASCAP, BMI and NMPA, to explore all available strategies to preserve and grow your public performance revenue in the face of the DOJ’s unfortunate determination.
At Warner/Chappell, the DOJ’s actions have only strengthened our resolve to find new revenue opportunities for our songwriters. As we move forward, we will keep you informed and we may ask you to lend your support to our efforts.
Yours sincerely,
Jon Platt
Chairman & CEO, Warner/Chappell
Jody Gerson’s letter to UMPG worldwide in full
Dear Colleagues,
At UMPG, our approach to the business is fundamentally grounded in our steadfast commitment to do what’s best for songwriters. No matter what, all of us at UMPG will continue to lead, innovate and adapt in the marketplace to ensure that our songwriters achieve greatest value.
Two recent events call that to mind. First, you may have seen reports that the U.S. Department of Justice (DOJ) has issued a recommendation on the consent decrees governing ASCAP and BMI.
In short, we believe that the DOJ’s decision is bad for songwriters and we are deeply disappointed. The DOJ not only declined to update consent decrees that haven’t been updated in over a decade and badly need to be modernized for today’s market, but they also decided that ASCAP and BMI must engage in “100 percent” licensing.
We do not believe that is in the best interest of songwriters because 100 percent licensing will lead to unfair prices that do not reflect the true value of the music that our songwriters create. It will also provide a disincentive to songwriters to work with fellow writers who are signed with a different PRO.
As we learn more, we will update you further but as always our response will remain grounded in our fundamental approach to our business and our songwriters.
Separately, but recalling the same values, I am heartened by the music community’s recent unity on the effort to end the “value grab” and win fair compensation for creators. Over the past couple of weeks, more than 500 U.S. artists and more than 1000 European artists, along with publishers and indies and majors and many more, urged Congress and the European Union, respectively, to address this problem.
If we are to make progress on the challenges we face as an industry, we must have this kind of unity.
Thank you for all you do at UMPG to help us live up to those core values.
![Jody Gerson_UMPG[2]](https://www.musicbusinessworldwide.com/files/2016/06/Jody-Gerson_UMPG2.jpg "Jody Gerson_UMPG[2]")
