NMPA APPLAUDS BMI ROYALTY SUIT VS. SIRIUSXM

The NMPA is applauding BMI after the latter company filed an action in its rate court against SiriusXM over what it claims are "outdated" licensing rates proposed by the digital broadcaster.

BMI claims that, despite extensive good faith negotiation, SiriusXM is offering lower payments to BMI songwriters, composers and publishers that do not take into account several important factors.

"We were compelled to file this action given their insistence on underpaying the creators of the music that drives the majority of their business," said BMI President/CEO Mike O'Neill. "SiriusXM’s proposal is a clear attempt to rely on a rate that was established when the company was very different in terms of its size, reach, degree of digital focus and revenue growth, and falls well below what is in the best interests of our affiliates."

"Digital radio payments to songwriters and music publishers have been a huge problem for many years," added NMPA President/CEO David Israelite (pictured). "We are extremely pleased that BMI has taken the largest satellite radio company in the world to court to demand what’s fair. Today, record labels and artists receive from digital radio significantly more than songwriters on a model that has historically valued them equally. Labels and artists are not paid too much. Songwriters and publishers are not paid enough. We fully support BMI in their fight for the value of songs."