ASCAP and BMI React to US DoJ Appeal on Consent Decree Decision
On 11 November, the U.S. Department of Justice (DoJ) filed a motion to appeal the 16 September decision of Judge Stanton challenging the DoJ interpretation of the BMI consent decree. Following a two-year review of the ASCAP's and BMI's consent decrees, this interpretation would require 100% licensing. Judge Stanton rejected this interpretation, agreeing with BMI that the BMI consent decree allows fractional licensing and does not require full-work (100%) licensing. ASCAP and BMI have released statements and press releases in response to this latest development.
Statement from ASCAP CEO Beth Matthews:
The Second Circuit’s ruling in this case will affect the rights of more than a million American songwriters and composers, thousands of whom have expressed strong opposition to the DOJ’s position, and we are hopeful the Court will affirm Judge Stanton’s decision. ASCAP looks forward to resolution of this matter as we continue to advocate for modernizing the consent decrees for today’s world.”
Statement from BMI President and CEO Mike O’Neill:
While we hoped the DOJ would accept Judge Stanton’s decision, we are not surprised it chose to file an appeal. It is unfortunate that the DOJ continues to fight for an interpretation of BMI’s consent decree that is at odds with hundreds of thousands of songwriters and composers, the country’s two largest performing rights organizations, numerous publishers and members of the music community, members of Congress, a U.S. Governor, the U.S. Copyright Office and, in Judge Stanton, a federal judge. We believe Judge Stanton’s decision is correct and look forward to defending our position in the Court of Appeals for the Second Circuit.”
To view the below press release on ASCAP’s website, please click here.
To view the below press release on BMI’s website, please click here.
ASCAP Comments on U.S. Department of Justice Appeal of BMI Rate Court 100% Licensing Decision to Second Circuit
November 11, 2016 – The American Society of Composers, Authors and Publishers (ASCAP) issued the following statement from ASCAP CEO Beth Matthews in response to the U.S. Department of Justice (DOJ) filing its notice of appeal of the BMI Rate Court’s rejection of the government’s 100% licensing position:
“The Second Circuit’s ruling in this case will affect the rights of more than a million American songwriters and composers, thousands of whom have expressed strong opposition to the DOJ’s position, and we are hopeful the Court will affirm Judge Stanton’s decision. ASCAP looks forward to resolution of this matter as we continue to advocate for modernizing the consent decrees for today’s world.”
On August 4, 2016, after nearly two years of review, the Justice Department’s Antitrust Division issued a closing statement, in which it declined to update the 75 year-old ASCAP and BMI consent decrees in ways that songwriters and other music creators had requested and instead called for ASCAP and BMI, the nation’s two largest performing rights organizations (PROs), to license all songs within their repertoire on a 100% or “full” works basis, which means they must license shares of a work controlled by their own member and affiliates as well shares controlled by members and affiliates of other PROs. That same day, BMI filed a lawsuit in its Rate Court challenging the government’s 100% licensing interpretation of the consent decree. On September 16, 2016, U.S. District Court Judge Louis Stanton issued an order rejecting the government’s interpretation and noting that “nothing in the consent decree gives support to the division’s views.”
Following the DOJ closing statement in August, ASCAP and BMI announced plans to pursue a joint strategy to address the DOJ’s failure to modernize the aging consent decrees and its decision to mandate 100% licensing, with BMI taking the lead on litigation and ASCAP exploring legislative reforms in Congress.
BMI Responds to DOJ Appeal of Fractional Licensing Ruling
Dear BMI member,
As you know, on September 16 federal Judge Louis Stanton issued an order rejecting the U.S. Department of Justice’s (DOJ) recent interpretation of the BMI consent decree, concluding that BMI is free to engage in the fractional licensing of musical works. As we expected, the DOJ filed a motion today to appeal that decision. Rest assured that BMI is well prepared to once again defend our position in court.
I would like to share my statement to the press regarding the appeal:
“While we hoped the DOJ would accept Judge Stanton’s decision, we are not surprised it chose to file an appeal. It is unfortunate that the DOJ continues to fight for an interpretation of BMI’s consent decree that is at odds with hundreds of thousands of songwriters and composers, the country’s two largest performing rights organizations, numerous publishers and members of the music community, members of Congress, a U.S. Governor, the U.S. Copyright Office and, in Judge Stanton, a federal judge. We believe Judge Stanton’s decision is correct and look forward to defending our position in the Court of Appeals for the Second Circuit.”
As always, I will continue to update you on further happenings on this front. In the meantime, please know that we are approaching this development in the same way that led us to our initial victory – by fighting to protect your rights and maximize the value of your music.
Mike O’Neill
President & CEO