Performance rights organization BMI has filed a rate court action against SiriusXM, seeking to determine fair compensation for songwriters, composers, and publishers. The action comes after two years of unsuccessful negotiations, during which SiriusXM allegedly attempted to reduce payments to rights holders.

BMI President and CEO Mike O'Neill emphasized that SiriusXM's proposed rates fail to reflect the company's current market position, size, and revenue growth. The organization argues that accepting outdated rates would significantly undervalue their members' musical contributions, which are fundamental to SiriusXM's programming.

The petition, filed on September 12 in New York court, highlights BMI's extensive catalog of over 22.4 million songs and compositions. Under the Consent Decree's Article XIV(A), BMI must propose reasonable fees to music users, with both parties able to seek court evaluation if an agreement cannot be reached.

BMI quoted its proposed fees and terms for a license covering January 1, 2022, through December 31, 2026, on May 8, 2023. The court filing requests either confirmation that BMI's quoted rates are reasonable or a determination of appropriate rates for the BMI repertoire.

This legal action reflects the ongoing tension between performance rights organizations and digital music services over fair compensation for music creators in an evolving digital landscape.

Related Articles

Previous Articles