Consent Decree Update and Reaction From ASCAP's CEO

[admin]

Let the comments roll! How do you feel about this? This does not affect only ASCAP Members.


A Message from Beth Matthews to ASCAP's Songwriter, Composer and Publisher Members About the Recent DOJ Proposal

Dear ASCAP Member,

This week, ASCAP and BMI met jointly with the US Department of Justice Antitrust Division to hear the government's proposal regarding our respective consent decrees. As you may have read, the DOJ is recommending no updates to the consent decrees at this time and, instead, the DOJ believes that the consent decrees currently require that ASCAP and BMI license all songs in our respective repertories on a 100% basis, ending the long-standing industry practice of fractional share licensing.

All of us at ASCAP are deeply disappointed by the DOJ's proposal – especially given that thousands of ASCAP members wrote to the DOJ expressing serious concerns about 100% licensing and how it would impact songwriters' livelihoods and creative freedom. The US Copyright Office and numerous members of Congress voiced their opposition to 100% licensing as well.

We want you to know that while the DOJ has expressed their views, this is not the final outcome of this process. ASCAP strongly disagrees with the DOJ's position, and we are carefully considering all of our options, including potential legislative and legal remedies.

We know that you may have questions and concerns and we hope to have more answers and clarity to share in the coming weeks as we work through this process with the DOJ. In the meantime, I want to reassure you that this in no way changes your ASCAP membership or ASCAP's commitment to protect, support and advocate for you and the value of your musical compositions.

As the only member-owned and run performing rights organization in the US, we are deeply committed to ensuring the health of our community – our songwriter, composer and publisher members. You are the heart and soul of ASCAP and the very foundation of the music industry. As ASCAP has always done, we will keep fighting to preserve your rights.

Sincerely,

Elizabeth Matthews
ASCAP CEO

[hummingbird]

I am very concerned about this - as a member of SOCAN (affiliated with ASCAP) I sometimes collaborate with ASCAP or BMI members. If this goes through we'll all be discouraged from co-writing, yet this is one of the best ways for us to foster creativity and mutual success.

[cassmcentee]

I agree Vikki!

From Craig Shelburne (07/01/2016):
"The decision on 100 percent licensing means that a song co-written by an ASCAP songwriter and a BMI songwriter would be available to license with approval from just one PRO. It also means that if a songwriter owns only a portion of the song, he or she can license the full song, as long as that songwriter ensures the other credited writers are getting paid. Under the current system, known as fractionalized licensing, each copyright owner in the song takes care of licensing their portion.

Meanwhile the ruling declined requests from major publishing companies to have a right to negotiate licensing rates with digital music providers like Pandora and Spotify. The original consent decree was enacted in 1941, and pertained specifically to ASCAP and BMI, but the music industry has lobbied for the last two or three years to modernize the law. Their requests were all denied in the ruling.

Technically, both PROs must consent to the changes. The next step is approval from federal rate court judges."

[cassmcentee]

and here: http://www.billboard.com/articles/news/ ... -amendment

[Len911]

A nearly two-year process to amend the consent decree has ended with no changes to the consent degree

While most agree that U.S. copyright law says each songwriter can license 100 percent of a song

DOJ didn't really change anything. Just enforcing the law??

However,

The PROs do not have to agree with the DOJ's new interpretation of the consent decree:

NEW?and

any changes, like the enforcement of 100 percent licensing, must be approved the ASCAP and BMI rate-court judges.

and

Even if the PROs agree to abide by the DOJ'S interpretation of the consent decree, some music publishing executives see a last-ditch effort to block it when it is reviewed by the ASCAP and BMI rate courts:

[VanderBoegh]

Damn, this is ludicrous. To essentially stop cross-PRO collaborations is outlandish. Can't believe it's actually working its way through the Department of Justice...

I'm an ASCAP guy. But some of my main collaborators are BMI, SOCAN, and SEASAC. Come to think of it., I don't think I do many collaborations at all with people within my own PRO.

This will be disastrous if it goes through.

~~Matt

[mojobone]

I'm not sure if that's the best way to interpret the change, but I'm on the side of authors being able to place limits on the use of their works.

[admin]

Here's today's letter from ASCAP's chairman, Paul Williams.

A Message from ASCAP President Paul Williams to Members About the DOJ’s 100% Licensing Proposal

Fellow ASCAP members:

As a songwriter, words are my bread and butter. But I’ve spent the past week struggling to find the right words to express how disappointed I am by ASCAP’s recent meeting with the US Department of Justice regarding our consent decree.

I know many of you share my frustration with this process. Songwriters have been disadvantaged in the marketplace by a regulatory structure that was conceived in a very different era. We went to the DOJ seeking their help to update the consent decrees. Instead of making the necessary modifications, we have been saddled with a disruptive proposal that ignores songwriters’ concerns for our future livelihoods in a streaming world, serves absolutely no public interest and creates confusion and instability for all of us who depend on the efficiencies of collective licensing.

This, even after thousands of you provided comments to the DOJ on your perspectives as professional music creators. It is as if the DOJ saw songwriters struggling to stay afloat in a sea of outdated regulations and decided to hand us an anchor, in the form of 100% licensing, instead of a life preserver.

I am so grateful to those of you who generously and fearlessly gave of your time and participated in this process. I know you must feel like your voices were not heard. But I am telling you, it has made a difference.

This process and this fight are far from over. Rest assured, because so many of you were willing to take a stand on these issues, we have gained important allies in Washington who are committed to standing with songwriters.

ASCAP and BMI are continuing our discussions with the DOJ about our consent decrees. ASCAP is also working closely with BMI and the entire songwriting and publishing community as we evaluate all of our options and carefully consider the best path forward. We have a team of legal experts, effective advocates in DC, an incredibly strong management team under the direction of our CEO Beth Matthews, and, of course, the guidance of your dedicated elected writers and publishers on the ASCAP Board.

As we continue to work to modernize music licensing, we must remember what has sustained ASCAP and set us apart for more than 100 years. We are a non-for-profit collective of music creators - an organization owned and run by our members. Everything we do is in the best interests of our songwriter, composer and music publisher members. That has always been our strength and that will be our strength going forward.

Sticking together as music creators, ASCAP has managed seemingly insurmountable challenges in the past. And we’ve withstood them all, preserving our rights and our livelihoods while moving the industry forward in the process.

There is no doubt in my mind that when we look back on this chapter in our history, we will be able to say that we did it once again.

In the meantime, we are working closely with our allies in DC. I give you my word that we will keep you informed as the process moves forward. I know many of you are eager to know what you can do, and we will have more to share on that front very soon. We know we can count on you to stand with ASCAP and stand with songwriters.

Yours in solidarity,

Paul Williams

[Len911]

ASCAP is also working closely with BMI

That is good, because there is nothing better than two monopolies working closely together to make the case that the Antitrust Consent Decree is no longer necessary!

Just sayin'

[hummingbird]

http://www.bmi.com/news/entry/qa_on_the ... ent_decree