US: Sesac settles antitrust lawsuit over royalty rates

The Radio Music License Committee has announced terms of a settlement agreement that brings an end to almost three years of antitrust litigation commenced by the RMLC against SESAC relative to the public performance by radio stations of musical works in the SESAC repertory. The RMLC represents the vast majority of the nation’s commercial radio stations.

The settlement is historic insofar as it represents the first time in SESAC’s 85-year history with radio broadcasters that the performing right organization’s license fees will be subject to determination by a third-party arbitration panel.

The highlights of the settlement include:In the absence of a voluntary agreement on industry rates, the parties will participate in binding arbitration to set reasonable license fees to be offered the radio industry through the RMLC. The binding arbitration period will encompass 22-years commencing 2016 and no historic SESAC rates may receive precedential value.

Full content: The New York Times

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