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

Max Media Promotes McKay, Hoyt in Coastal Virginia
Barry McKay
Barry McKay
Max Media has announced a pair of programming promotions affecting two of its Coastal Virginia stations, Country WGH (97.3 The Eagle) and AC WTWV (92.9 The Wave) in Norfolk-Virginia Beach. Barry McKay (pictured) has been elevated from his midday role on 97.3 The Eagle to Program Director/Brand Manager More

Programmatic Audio Buying Doubles Since 2022
Cumulus Media and Westwood One
Cumulus Media and Westwood One
A new study highlighted by Westwood One shows programmatic audio advertising has surged to record levels, with adoption among agencies and advertisers more than doubling over the past four years. According to research from Advertiser Perceptions, 82% of agencies and advertisers now buy audio More

Red Apple Launches Global Audio News Network
Worldwide News Network
Worldwide News Network
Red Apple Media has announced the launch of The Worldwide News Network, a new global audio news platform aimed at delivering real-time reporting to listeners in the U.S. and internationally. The company has named Lee Harris as Vice President of News for WABC Radio and the new network. Harris, a 2024 More
Advertisement

NYPR Names Sharma, Christner, Cohen to Leadership
New York Public Radio
New York Public Radio
New York Public Radio has appointed three executives to its leadership team, naming Ru Sharma as Chief People Officer, Emily Christner as Chief Growth and Engagement Officer, and Patti Cohen as Senior Vice President of Analytics, Insights and Research. The appointments are More

Orbyt Media Launches Imaging Blueprint in Canada
Orbyt Media
Orbyt Media
Orbyt Media has launched Imaging Blueprint AC/Classic Hits in Canada, expanding its portfolio of radio imaging and production services. The AC-focused format is now available nationwide on a cash or barter basis and has made its Canadian debut on iHeartRadio Canada's MOVE Radio More

Pebbles Exits WBQT (HOT 96.9) Mornings to Grow Brand
Peebles
Peebles
Pebbles is stepping away from her role on the WBQT (HOT 96.9) morning show in Boston, ending a long run as a key voice on Beasley Media Group's outlet to focus on expanding her Positively Pebbles brand. The move shifts her away from daily on-air duties, though she will continue to engage audiences 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