Pandora has spent more than a year battling publishers over music rights and licensing rates.
The licensing rates that streaming radio service Pandora pays to the American Society of Composers, Authors & Publishers (ASCAP) will remain the same -- 1.85% of its total revenue -- through 2015, a federal judge in New York ruled March 14. Pandora has paid that rate since 2011.
The federal judge who oversaw the case, U.S. District Judge Denise Cote of the Southern District of New York, sealed the final order to give Pandora and ASCAP time to request redaction of confidential information before it is made public. Pandora and ASCAP have until March 18 to propose redactions.
"Streaming is growing in popularity - and so is the value of music on that platform… But recent agreements negotiated without the artificial constraints of a consent decree make clear that the market rate for Internet radio is substantially higher than 1.85%." John LoFrumento, ASCAP CEO
Pandora, which will not comment on the ruling until it's made public, had wanted to lower the rate it pays ASCAP to 1.7% of its total revenue.
ASCAP has around 475,000 members including well-known acts like Katy Perry, Jay-Z, and Aerosmith. Its primary function is to license members' music for public performance, including for play on radio.
Pandora is also involved in a similar lawsuit against Broadcast Music, Inc., another performance rights organization. The two parties are scheduled to go to trial later in 2014.
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