DOJ To Review Music Licensing Paradigm

Agreements that the Justice Department made with two music licensing giants more than 70 years ago will come under scrutiny, the agency said June 4, as it plans to review the current copyright and licensing system that many say is outdated. Ascap and BMI, the two licensing firms that administer billions in royalties as they provide music to radio stations, websites and even restaurants, claim their ability to collect fair rates for the music in the digital age is being hindered by the decades-old agreement with the government. The groups seek more flexibility in licensing, and to replace the “rate courts,” based in the Southern District of New York, with arbitration, as the process for resolving disputes. The original 1941 consent decrees came about after a federal antitrust investigation. The DOJ will establish a 60-day period for public comment before making recommendations.