Pandora loses court order against BMI, could ASCAP challenge previous ruling?

Things were looking good for internet radio station Pandora back in September, when it won a monumental victory over performing rights organization ASCAP (American Association of Composers, Authors and Publishers). However, when they brought more-or-less the same suit against P.R.O. BMI (Broadcast Music, Inc.), a judge ruled the opposite.

Understanding how Pandora won the first case is essential in understanding how it lost the second. The radio service brought a court order against ASCAP when the latter organization tried to reorganize how it would be paid for its wares. ASCAP wanted to to negotiate individual contracts for every music publisher under its umbrella; essentially establishing that publishers that held the rights to big-name artists would merit higher-rates than publishers representing smaller acts.

Pandora argued this was illegal, saying it violated the original deal the service had secured with ASCAP. The judge agreed.

A contractual detail between BMI and the publishers under its roof led another judge to rule that the P.R.O. could go ahead with renegotiating its rates between individual publishers. ASCAP doesn't contractually allow publishers to withdrawal from it, whereas BMI does. Considering that the line between yes/no is so thin in this instance, Pandora will probably appeal. But, upon BMI's victory, ASCAP's own efforts could be strengthened. The third major P.R.O, SESAC (Society of European Stage Authors and Composers), has yet to challenge its contract.

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