Feeds

Pandora sues publishers over online music royalties

Says ASCAP is being unreasonable on rates

Providing a secure and efficient Helpdesk

Internet radio station Pandora has gone to court to try and get a better royalty deal from the American Society of Composers, Authors and Publishers (ASCAP.)

ASCAP has over 435,000 members, ranging from the biggest music publishers to individual troubadours, and Pandora had a license with them from 2005 to 2010. But over a year of negotiations over new royalty rates have come to naught, and so Pandora is heading into court to get what it thinks is a fair deal.

Pandora argues that the current royalty rates it is being charged are unfair and are stopping it from reaching profitability. Court documents note that ASCAP has already concluded deals with similar internet radio operations, but is refusing to give Pandora the same kind of royalty rates.

"It's outrageous Pandora would try to reduce the already nominal amount they pay songwriters and music publishers, when Pandora's business model is based entirely on the creative contributions of those songwriters," said David Israelite, president of the National Music Publishers' Association (NMPA). "To file this suit at the same time that Pandora's founders are pocketing millions for themselves adds insult to injury."

That last dig seems to be directed at cofounder of Pandora Tim Westergren, who has been steadily selling his shares in the internet radio station at the rate of around $1m per month. As El Reg has pointed out, this hardly fills one with confidence about his view of the long-term viability of the company.

A lot depends on the Pandora-sponsored Internet Radio Fairness Act – IRFA (H.R. 6480/S. 3609) – which seeks to cut the amount of royalties paid to musicians by 85 per cent, as well as reducing the rights of musicians to bargain collectively for royalties to their works. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.