BMI AND RADIO LICENSERS
AGREE TO SETTLE

BMI and the RMLC (The Radio Music License Committee) have agreed to terms of a settlement concerning the fees payable by broadcasters to publicly perform the more than 7.5 million works in the BMI repertoire through 2016.

The RMLC represents the vast majority of the nation’s radio stations. The settlement, which will reguire federal court approval, would bring an end to ammost three years of litigation between the parties.

The announcement comes in the wake of last week's groundbreaking performance fee deal between Clear Channel and the Big Machine label to circumvent government regulation.

The new BMI license covers the period January 1, 2010 through December 31, 2016. The deal features a return to a percentage-of-revenue fee structure and addresses a range of new media platforms.

Some of the features of the bill:

*$70.5 million industry fee credit against 2010-2011 industry payments;

*1.7%-of-gross-revenue fee structure (with simplified revenue reporting) for stations on the blanket music format license, less a standard deduction of 12% for revenue derived from terrestrial/analog and HD multicasting broadcasts and a 25% deduction for revenue attributable to new media uses;

*Retention of the program-period license that benefits many talk-format stations, with a base fee of 0.2958% of gross revenue, less the same deductions noted above; and

*Expanded rights coverage to accommodate the industry’s developing new media platforms related to Internet websites, smart phones and other wireless devices.

The impact of this settlement will be reflected immediately with BMI’s June 2012 billing statements.With the $70.5 million credit adjustment, many stations will have a BMI credit balance available for the remainder of this year. The new BMI license forms will be made available to stations following approval of the settlement.

BMI SVP/Licensing Michael Steinberg commented: " This agreement allows us to move forward without the cost and uncertain outcome of further litigation. While fees will be lower than the prior final agreement, the return to a percentage-of-revenue license will allow us to grow BMI revenues as the radio industry rebounds."

RMLC Chairman Ed Chrisitian added: "Once the agreement with BMI is approved by the court, radio broadcasters will continue to nurture their longstanding relationships with the performing rights organizations. We will work together to solve mutual problems in an ever-changing environment of both radio and intellectual property rights as it relates to authors, composers and publishers."