A federal judge left unchanged the rate that Pandora pays songwriters to license their music.
The judge set a rate of 1.85% for each of the five years of the license term, which is retroactive to 2011 and continues through 2015. Pandora had sought to lower the rate to the 1.7% Radio Music Licensing Committee rate for broadcast radio.
The American Society of Composers, Authors and Publishers had proposed an escalating rate structure, according to ASCAP. Its Chief Executive Officer John LoFrumento says the group is “pleased the court recognized the need for Pandora to pay a higher rate than traditional radio stations,” however he says “streaming is growing in popularity — and so is the value of music on that platform.”
The decision “further demonstrates the need to review the entire regulatory structure, including the decades-old consent decrees that govern … licensing, to ensure they reflect the realities of today’s music landscape,” says LoFrumento.
Pandora had filed a lawsuit against ASCAP 2012 over what could be considered “reasonable” licensing fees.
ASCAP said the ruling was “filed under seal” and not yet public. Pandora said it could not comment until the ruling is made public.