DOJ To Appeal Licensing Ruling

The DOJ previously investigated regulatory agreements governing ASCAP and BMI and decided not to update those agreements for the digital age. The department also ruled that, moving forward, each credited songwriter should be able to license an entire song, an arrangement known as “100 percent licensing.”

BMI brought its concerns to a rate court and Judge Louis Stanton ruled in September that the DOJ’s decision was wrong, and supported the arrangement of “fractional licensing,” where permission is required from all license-holders.

Upon hearing that the DOJ would be bringing the issue to the Court of Appeals for the Second Circuit, BMI President and CEO Mike O’Neil issued a statement. “While we hoped the DOJ would accept Judge Stanton’s decision, we are not surprised it chose to file an appeal. … We believe Judge Stanton’s decision is correct and look forward to defending our position in the Court of Appeals for the Second Circuit.”

The decision for 100 percent licensing would be a win for tech companies now butting heads with the music industry on how to pay for digital plays.