Pandora has been embroiled in a lengthy battle with the major labels over royalty payments from oldies songs that have been streamed on the service. However that battle appears to be coming to a close with Pandora looking to settle to the tune of $90 million.
According to a report in the New York Post, Pandora would pay the majors the settlement amount of $90 million for playing pre-1972 recordings, but won't pay for their broadcast. Pandora would pay $60 million for use through 2015 and then another $30 to cover until 2016. Beyond that is uncertain and could leave more sticky points in label deals going forward.
The settlement is similar to what Sirius XM just had to do with the majors. The premium radio network just had to pony up a reported $210 million to the majors for their use of pre-1972 recordings.
Both companies have argued in federal court during various lawsuits that federal copyright law does not protect master recordings before Feb. 15, 1972 and thus they don't have to performance royalties.
Record labels and artists have in turned argued that because of individual state laws, those same recordings are protected by copyright law. The Turtles, who own their masters, including the hit "Happy Together," sued first Pandora and then Sirius in the state of California. The Turtles have had several wins against Sirius, while Pandora suffered a setback in February after a judge denied their motion to move the case out of court.
A Pandora spokesperson refused to comment on the situation, saying, "We don't comment on rumor or speculation."
According to the NY Post, the Pandora board is expected to sign the settlement agreement on Oct. 20.
© 2024 MusicTimes.com All rights reserved. Do not reproduce without permission.
