May 2, 2008 • 1 min read

US court rules on online publishing rates

A US District Court has ruled that AOL, Real and Yahoo must pay ASCAP 2.5% of music-use-adjusted revenue for playing songs on their online services.

A US District Court has ruled on a long running dispute between three of the US's big net outfits - AOL, Real and Yahoo - and publishing rights body ASCAP, regarding how much the web firms should pay the collecting society for the rights to play songs on their online music services. ASCAP seemed very happy with the ruling, which presumably means the web companies won't be. They'll have to pay ASCAP 2.5% of any "music-use-adjusted revenue", whatever that means. Some media reports in the US reckon it will mean the three companies paying the rights body $100 million between them.

No word from the net types as yet, but ASCAP chief Marilyn Bergman says this: "The Court's finding represents a major step toward proper valuation of the music contributions of songwriters, composers and publishers to these types of online businesses - many of which have built much of their success on the foundation of the creative works of others. It is critical that these organisations share a reasonable portion of their sizable revenues with those of us whose content attracts audiences and, ultimately, helps to make their businesses viable. This decision will go a long way toward protecting the ability of songwriters and composers to be compensated fairly as the use of musical works online continues to grow".

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