DOJ Consent Decree Review Moving Fast, Reviewing Hundreds of Comments From Across the Industry

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Performing rights organizations could find themselves with the most negotiating power they have had since 1941 – or the biggest lobbying fight of their lives on Capitol Hill.

In an ideal world, ASCAP and BMI would like to see the decrees terminated, since that would let them negotiate more aggressively on behalf of publishers and songwriters and let them compete on an even playing field against their rivals, SESAC and Global Music Rights , which aren’t subject to such regulation, as well as foreign PROs. But it’s more likely that the decrees will be changed.

If the decrees are terminated, ASCAP and BMI could change the way they operate to make themselves more competitive: According to industry observers, those could ask for exclusive licenses from songwriters, no longer accept every creator and form an invite-only subset of writers to compete with the lucrative deals that SESAC and GMR are offering.

The songwriting trade groups have divergent views, too. Both the Songwriters Guild of America and the Music Creators of North America say they can abide partial withdrawals but only if publishers agree to have PROs administer the royalties from direct deals.

If the tech and radio industries lobby for legislation, they could trigger a Congressional process -- but as the NAB well knows, it is much easier to kill legislation than to shepherd a bill through the convoluted D.C. legislative process.

 

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