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The decision dealt a setback to the Justice
Department's effort to require Broadcast Music Inc, or BMI, and
the American Society of Composers, Authors and Publishers, or
ASCAP, to only license music to digital streaming services,
radio and television stations, bars and other music users if
they could issue a "full-work" license.
That push affected both BMI and ASCAP, though only BMI
challenged it in court. ASCAP and BMI license about 90 percent
of music heard online and in movies, TV shows and bars.
ASCAP and BMI argued the requirement raised problems in
situations where songs were co-authored but did not specifically
authorize licensing by both authors. The licensing services had
issued "fractional" licenses for those songs and assumed that
all royalties would be paid if licensees paid BMI and ASCAP.
In its ruling, the U.S. Court of Appeals for the Second Circuit
upheld a New York district court decision that found the consent
decree with BMI did not require the licensing company to only
issue full-work licenses.
"We have said from the very beginning that BMI's consent decree
allowed for fractional licensing, and we are incredibly
gratified that Judge (Louis) Stanton and the Second Circuit
agreed with our position," BMI President Mike O'Neill said in a
statement.
ASCAP also said it was pleased with the appeals court decision.
The Justice Department had no immediate comment.
BMI has some 800,000 U.S. composers, songwriters and music
publishers among its members, while ASCAP counts some 640,000.
ASCAP represents artists such as Kelly Clarkson, Paul McCartney,
Katy Perry and Hans Zimmer, while BMI is home to Willie Nelson,
John Legend and Ed Sheeran among others.
(Reporting by Diane Bartz; Editing by Paul Simao)
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