BMI loved a double win Tuesday (March 28) in a federal fee courtroom determination that may improve the royalties the efficiency rights organizations’ songwriters earn at reside occasions.
The federally adjudicated determination in BMI’s fee case in opposition to Dwell Nation, AEG and the North American Live performance Promoters Affiliation (NACPA) awarded a 138% improve in fee to 0.5% of the occasion’s income. It additionally expands that income base to incorporate the total value of live performance corridor VIP packages and field suites, tickets offered on to the secondary market and servicing charges acquired by the promoters.
Beforehand, the income definition solely mirrored earnings immediately from the face worth of major market ticket gross sales.
The speed and expanded income base applies to the interval of mid-2018 via Dec. 31, 2022.
On the flipside, Southern District of New York Decide Louis Stanton, who handed down the speed courtroom determination, rejected BMI’s try and ditch the historic 10% low cost price that the commerce group and its promoters get for serving to to manage the license on behalf of BMI. As nicely, BMI’s effort to develop the income base to additionally embody sponsorship and promoting income was additionally rejected.
“This can be a large victory for BMI and the songwriters, composers and publishers we symbolize,” BMI president Mike O’Neill mentioned in a press release. “It can have a major and long-term optimistic affect on the royalties they obtain for the reside live performance class. We’re gratified the Courtroom agreed with BMI’s place that the music created by songwriters and composers is the spine of the reside live performance business and needs to be valued accordingly. Right this moment’s determination additionally underscores BMI’s continued mission to struggle on behalf of our associates, regardless of how lengthy it takes, to make sure they obtain honest worth for his or her inventive work.”
Previous to this determination, BMI and the reside live performance business have been working underneath a license negotiated in 1998 that was renewed twice via June 30, 2013. That settlement referred to as for promoters to pay a efficiency licensing fee of 0.3% of income for live performance venues with underneath 10,000 seats, and 0.15% of income for venues with over 10,000 seats. That fee, and the income definition that solely lined major market ticket gross sales, additionally served because the interim fee till this determination got here down at present.
Dwell Nation and AEG didn’t reply to instant requests for remark. The NACPA couldn’t be reached for remark.