Music licensing group BMI sues Pandora, deems radio station buy a ‘stunt’
Music licensors did not waste any time in characterizing Pandora’s acquisition of an FM radio station as an underhanded try and cheat performers out of royalties, however the rhetoric has now hit the courtroom, as Broadcast Music Inc. has filed a lawsuit towards the streaming service within the New York federal system. Key to the motion — which casts Pandora’s transfer as “an open and brazen effort to artificially drive down its license charges” — BMI asks for a blanket willpower of licensing charges for all music broadcast by Pandora. In line with BMI logic, the decrease royalty charges that terrestrial suppliers take pleasure in should not apply to the web phase of Pandora’s enterprise. Because the flip aspect to that argument, nevertheless, Pandora argues that it deserves equal footing with on-line rivals akin to Clear Channel’s iHeartRadio service, which pays the terrestrial charges. It is a murky determination, for positive. Hopefully the decide has a superb provide of Advil.