Home Login RADIO ONLINE RSS Facebook
Advertisement

U.S. Department of Justice Sides With Global Music Rights


In a victory for songwriters, the U.S. Department of Justice today weighed in on behalf of Global Music Rights (GMR) in its lawsuit against the Radio Music Licensing Committee (RMLC) and urged a federal court to reject RMLC's attempts to misconstrue the laws that prohibit its illegal, price-fixing, cartel behavior.

In a starkly worded filing, the Department of Justice's Antitrust Division stated that "Competitors' naked agreements to fix prices" - such as the cartel operated by the RMLC - "are one of the most pernicious forms of anticompetitive restraints that violate Section 1 of the Sherman Act." DOJ methodically dismantled the RMLC's attempt to justify decades of illegal collusion to pay songwriters below-market rates. Justice also called on the court to reject the core RMLC arguments in the litigation.

"The court filing by the Department of Justice reaffirms the legal position of GMR and vindicates the rights of artists and songwriters to be free from illegal price-fixing by radio stations," said Daniel Petrocelli, lead counsel for Global Music Rights.

Today's statement of interest from the nation's chief antitrust enforcer is a setback for the RMLC - a 78-year-old cartel that dominates the $22 billion terrestrial radio industry - and a significant win for GMR and all songwriters. GMR has consistently maintained that members of the RMLC illegally collude with one another to suppress rates paid to songwriters and composers for the public performance of their work.

"Today is a great day for artists, who have been bullied by the RMLC since the dawn of the modern radio industry," said GMR founder Irving Azoff. "Advocating on behalf of artists is our founding principle, and we refused to allow this unfair status quo to continue. We believe the days of this brazen, long-running cartel are now numbered. GMR has never been prouder to stand with songwriters to fight back."

Founded in 2013, GMR is the newest and most innovative player in the stagnant industry of performance rights licensing. GMR takes a fresh approach to licensing the performances of songs written by a small roster of popular songwriters, such as Drake, Bruce Springsteen, Bruno Mars, the Eagles, and Smokey Robinson. The work of these artists drives radio stations' revenue and profit, but due to decades of artificial price suppression by the RMLC cartel, songwriters receive just a tiny slice of the revenue they create for radio stations.

For over half a century, the RMLC has been the vehicle that the radio industry's horizontal competitors have used to illegally collude and fix prices to the detriment of songwriters. GMR filed suit against the RMLC in 2016 to challenge their stranglehold over the $22 billion radio industry.

Advertisement

Latest Radio Stories

Kim Bindel Joins WGTS Mornings in Washington DC
Kim Bindel
Kim Bindel
Christian Contemporary WGTS (91.9) Washington, DC has named veteran broadcaster Kim Bindel as the new co-host of its morning show alongside Jerry Woods. Bindel will succeed Summer Shepherd, who moved to afternoons in April. Claude Jennings, who has been serving as interim co-host, will return to his regular More

Steinem, Richards to Receive Gracies Torch Award
Alliance for Women in Media Foundation (AWMF)
Alliance for Women in Media Foundation (AWMF)
The Alliance for Women in Media Foundation (AWMF) will honor activist and author Gloria Steinem and producer, writer, and activist Amy Richards with the inaugural Gracies Torch Award during the 51st Annual Gracie Awards Luncheon on June 16 in New York City. The new award, created More

Westwood One Set for College World Series Finals
Westwood One Sports
Westwood One Sports
Westwood One and the NCAA Radio Network will once again provide live national radio coverage of the NCAA Division I Men's College World Series Championship Finals from Charles Schwab Field in Omaha, NE. Coverage of the best-of-three championship series begins Saturday, June 20, at 7:45pm ET, with every More
Advertisement

Futuri Unveils TopLine Enterprise Platform
Futuri
Futuri
Futuri has launched TopLine Enterprise, a new revenue intelligence platform designed to help media sales organizations automate key parts of the sales process, reduce administrative workloads, and accelerate revenue growth. Announced Wednesday from Austin, TX, the platform More

Chumley Joins WQIK's ''The Big Show'' Mornings
Chumley
Chumley
Jacksonville's New Country 99.1 WQIK has expanded its morning team with the addition of Chumley, who joins "The Big Show" alongside John, Megan and Froggy, airing weekdays from 5-10am, effective immediately. "Adding Chumley to 'The Big Show' was a no-brainer," said Casey Carter, Program Director for More

RightLine Adds WDBO, WHIO in National Expansion
RightLine
RightLine
Syndicated weekend talk program "RightLine with Drew Steele" has expanded its national reach with the addition of two new affiliates, WDBO in Orlando, FL and WHIO in Dayton, OH. The live weekend program, which airs Saturdays from 4-6pm ET, is an extension of Steele's Florida's Voice More

Return to Menu

Advertisement

Subscribe to our Newsletter
Radio news and headlines delivered right to your e-mail box -- and it's free.

Advertisement

Advertisement