BMI files rate court action against SiriusXM

BMI files rate court action against SiriusXM

The U.S. performance rights organization BMI has initiated a rate court action against SiriusXM, seeking to establish what it considers "fair and appropriate fees for a license" with the satellite radio service.

Filed in a New York court on September 12, BMI’s petition states that it represents the public performance rights in over 22.4 million songs and compositions across the United States. It operates under a Consent Decree, specifically citing Article XIV(A), which mandates BMI to offer music users what it deems reasonable fees and terms for requested licenses.

According to BMI’s filing, if an agreement on license fees and terms cannot be reached between BMI and a music user, either party can petition the court to evaluate the reasonableness of BMI’s rate quote and, if necessary, set the appropriate fee and terms.

In May 2023, BMI proposed a license fee and principal terms for SiriusXM covering the period from January 1, 2022, to December 31, 2026. However, the two parties have been unable to finalize these terms.

BMI's court filing seeks a determination that the quoted rates for the requested SiriusXM license are reasonable, or alternatively, requests the court to set reasonable rates for SiriusXM's public performance of songs within the BMI repertoire.

In a press statement issued on September 12, BMI claimed that, despite years of negotiations, SiriusXM is "attempting to lower its payments to BMI songwriters, composers, and publishers." The statement further accused SiriusXM of overlooking BMI’s substantial market share, shifts in the marketplace, the company’s transition to a digital service, and its impressive revenue growth.

BMI emphasized that its "songwriters and composers should not have to accept outdated rates that significantly undervalue their music, which forms the foundation of SiriusXM’s programming."

BMI’s action against SiriusXM follows last year’s successful resolution of a rate court dispute with live event promoters Live Nation, AEG, and the North American Concert Promoters Association (NACPA).

Commenting on the action, BMI’s President & CEO Mike O’Neill stated: “After negotiating with SiriusXM in good faith for over two years, we were compelled to file this action due to their insistence on underpaying the creators of the music that drives the majority of their business.”

He added that SiriusXM's proposal relies on outdated rates from a time when the company’s size, reach, digital focus, and revenue were significantly different, falling short of what is in the best interests of BMI’s affiliates.

NMPA President & CEO David Israelite also expressed support for BMI's action, stating: “Digital radio payments to songwriters and music publishers have been a major issue for years. We are extremely pleased that BMI has taken the largest satellite radio company to court to demand what’s fair.”

He emphasized the disparity in payments, noting that record labels and artists receive significantly more from digital radio compared to songwriters, which has historically valued them equally. "We fully support BMI in their fight for the value of songs," he concluded.