Radio Music Licensing Committee and GMR Propose a Settlement – Request Station Action by 1/31/22

The Radio Music Licensing Committee (RMLC) has published on its website a notice regarding a possible settlement with GMR.  As you know RMLC sued GMR for anti-trust over its music licensing practices.  GMR in turn sued RMLC for antitrust.   Unlike BMI and ASCAP, GMR is not subject to court review for the rates it charges stations.

The terms of the deal are confidential and will be provided to stations that may want to participate.  According to a letter send to stations by RMLC:

“The following contains important information concerning a conditional settlement of the RMLC-GMR antitrust litigations and your ability to continue to obtain a GMR license after your current license expires. Please read all the way to the end because your decision is required by January 31, 2022. Radio Music License Committee (“RMLC”) and Global Music Rights, LLC (“GMR”) have reached a conditional settlement agreement which would end the long-running RMLC-GMR lawsuits. GMR will send each broadcaster a direct communication about the settlement which is confidential and should not be discussed outside your radio group…

What do you need to do if you want to participate in this settlement?  If you wish to enter into the GMR license, and end the long-running litigations between RMLC and GMR, you will need to sign and return the license sent to you by GMR by January 31, 2022.”

“The settlement is “conditional” because it will be finalized only if a sufficient percentage of radio stations opt into the settlement by signing the form license agreement that RMLC and GMR negotiated. The negotiated form license agreement, with your stations’ annual license fees, will be sent to you directly by GMR in a separate email.”

Each station and station group should examine the proposed license and make its own individual decision whether to join this settlement.  Stations should to read the proposed agreement carefully and consult their own attorneys.  Those not signing on to the settlement may need to make other individually negotiated arrangements with GMR.

For more information from the RMLC click HERE.

For an additional explanation from noted Communications Attorney David Oxenford click HERE.

 

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