R Street responds to DOJ review of ASCAP and BMI consent decrees
WASHINGTON (Aug. 4, 2016) – Following a two-year review of the antitrust consent decrees that govern coordinated action by the major performing rights organizations the American Society of Composers (ASCAP) and Broadcast Music Inc. (BMI), the U.S. Justice Department’s Antitrust Division announced today it has chosen not to amend those agreements.
The following statement on the decision can be attributed to R Street Technology Policy Fellow Sasha Moss:
R Street long has maintained that the purpose of copyright under the U.S. Constitution is not merely to provide monopoly revenue streams to content companies, but rather to ensure that creative works actually reach the public. The DOJ today simply clarified offerings of ‘100 percent’ or ‘full-work’ licenses, which permit paying users – who may range from bars to radio stations – to play any song in a PRO’s catalog. These licensing deals offer an efficient and clear method to acquire a license. The fractional-licensing approach proposed by the PROs would increase transaction costs and clog the market. As the means by which consumers experience and enjoy music continues to evolve, we must be cognizant not to stifle innovation or the marketplace.
Following the decision, BMI announced that it would take legal action, sending a letter to U.S. District Court Judge Louis Stanton requesting a pre-motion conference.
