Sunday, June 8, 2008

Federal court will determine ASCAP fees for music on AOL Yahoo CNET News

A federal district court in New York ruled Wednesday that the American Society of Composers Authors and Publishers is owed reasonable license fees by online media powerhouses AOL RealNetworks and Yahoo for the music streamed and distributed on their sites. Currently music streamed by sites owned by the three companies is advertising supported and no dividends are paid to ASCAP. The U.S. District Court for the Southern District of New York will now determine appropriate fees for AOL RealNetworks and Yahoo all of which have applied for ASCAP licenses but have not been able to agree upon fees. The total payments to the group which represents over songwriters composers and music publishers not record labels could reach million. Click here for a PDF of the court s decision . The license fees would cover music distributed as early as July and then up through the end of . Because songwriters and composers often aren t affiliated with record labels that distribute their music as per! formed by another artist they presently are left without licensing fees from digital distribution on the three companies named in the court decision. ASCAP President Marilyn Bergman wrote in a statement following the decision 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. 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. More details to follow. 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