Andre Yoskowitz
14 Jun 2013 21:50
Less than a week after the company purchased an FM radio station in an effort to get better royalty rates, the BMI has sued Pandora, calling the purchase a "stunt" and a cry for attention.
BMI collects license fees for songwriters and composers.
"Pandora's stunt makes a mockery of the performing rights licenses and the rate court process," BMI said in its suit. It is now asking the court to set "reasonable, market-driven fees for Pandora." The organization claims direct negotiations have completely fallen apart.
Pandora has been alleging that the American Society of Composers, Authors, and Publishers (ASCAP) has allowed artists to selectively back out of licensing popular songs to the service, and has even filed a motion claiming "ASCAP has violated the terms of its antitrust consent decree with the Department of Justice."
The company then purchased KXMZ-FM in Rapid City, SD, in an effort to gain access to the alleged preferential treatment ASCAP has given terrestrial stations.