Federal Court Decides License Fees to Be Paid to ASCAP by AOL, RealNetworks and Yahoo!
Historic Decision Provides Framework for Valuing Use of Musical Works Online; Also Validates Need to Appropriately Compensate Songwriters & Composers for Role Their Works Play in Success of Online Businesses
| Source: ASCAP
NEW YORK, NY--(Marketwire - April 30, 2008) - The United States District Court for the
Southern District of New York today made public a decision in the
proceeding to determine reasonable license fees to be paid to the American
Society of Composers, Authors and Publishers (ASCAP) by AOL (Time Warner
Inc.) (NYSE : TWX ), RealNetworks Inc. (NASDAQ : RNWK ) and Yahoo! Inc.
(NASDAQ : YHOO ) for their online performance of musical works.
The decision covers license fees for periods starting as far back as July
1, 2002, and continuing through December 31, 2009, for the performance of
musical works in the ASCAP repertory by AOL, RealNetworks and Yahoo! Based
on the formula established by the Court, the total payments to be made to
ASCAP and its membership by these three services for that full period could
reach $100 million. The Court's comprehensive 153 page decision was based
on extensive evidence presented by both sides in the case regarding the
online performance of musical works by AOL, RealNetworks and Yahoo!
ASCAP represents more than 320,000 songwriter, composer and music publisher
members. It does not represent, and this decision has no relation to, the
rights owned by record companies.
"The Court's finding represents a major step toward proper valuation of the
music contributions of songwriters, composers and publishers to these types
of online businesses -- many of which have built much of their success on
the foundation of the creative works of others," said ASCAP President and
Chairman and Academy Award-winning lyricist, Marilyn Bergman. "It is
critical that these organizations share a reasonable portion of their
sizable revenues with those of us whose content attracts audiences and,
ultimately, helps to make their businesses viable. This decision will go a
long way toward protecting the ability of songwriters and composers to be
compensated fairly as the use of musical works online continues to grow."
"Musical works both support and enhance the business models of many major
technology- and Internet-driven organizations -- especially those that
derive advertising revenue from consumer traffic and engagement," said
ASCAP CEO John A. LoFrumento. "This historic decision, for the first time,
provides a clear framework for how the online use of musical works should
be appropriately valued. This decision also provides clear validation of
the flexibility and applicability of the ASCAP blanket license model
relative to the use of musical works on the Internet -- something the Court
itself specifically noted in its written decision."
LoFrumento added that the Court's decision confirms the unique value ASCAP
provides as the only performing rights organization owned by its own
members. "Given our member ownership, ASCAP faces no conflicts in
representing the rights and interests of songwriters, composers and music
publishers. This allows us to effectively lead the fight for the royalties
they deserve across all channels and media," he said.
The full court decision may be found at:
http://www.ascap.com/press/2008/0430_ratecourtdecision.aspx
About ASCAP:
Established in 1914, ASCAP is the first and leading U.S. Performing Rights
Organization (PRO) representing the world's largest repertory totaling over
8.5 million copyrighted musical works of every style and genre from more
than 320,000 songwriter, composer and music publisher members. ASCAP has
representation arrangements with over 90 similar foreign organizations such
that the ASCAP repertory is represented in nearly every country around the
world. ASCAP protects the rights of its members and foreign affiliates by
licensing the public performances of their copyrighted works and
distributing royalties based upon surveyed performances. ASCAP is the only
American PRO owned and governed by its writer and publisher members.
www.ascap.com