BMI Reaches Licensing Agreement With The RMLC
June 11, 2012

BMI and the Radio Music License Committee have announced a new licensing settlement, as the parties have agreed on a fee structure through 2016 for commercial radio. The settlement will require approval in federal court and will end over two years of litigation between BMI and the RMLC.

The new license deal covers January 1, 2010 through December 31, 2016 and includes a return to a fee structure based on a percentage of stations' revenues. The agreement also addresses new, digital media platforms. RMLC says the radio industry will pay out $398 million less than they would have under the previous agreement. BMI has also agreed to a $70.5 million refund to broadcasters for fees already paid out in 2010 and 2011 under the previous, interim rates.

BMI SVP of Licensing Michael Steinberg says, "BMI is so proud to represent the world’s best songwriters, composers and music publishers and their incredible contributions to the success of American radio. This agreement allows us to move forward without the cost and uncertain outcome of further litigation. While fees will be lower than the prior final agreement, the return to a percentage-of-revenue license will allow us to grow BMI revenues as the radio industry rebounds."

RMLC Chairman Ed Christian added, "It is a vote of confidence towards our industry that BMI has agreed to return to the historic percentage-of-revenue fee structure. Once the agreement with BMI is approved by the Court, radio broadcasters will continue to nurture their longstanding relationships with the performing rights organizations. We will work together to solve mutual problems in an ever-changing environment of both radio and intellectual property rights as it relates to authors, composers and publishers."

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Manny Simon
VP/Adult Formats,
Republic Records

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