Dear Broadcasters:                                                                   January 9, 2017

 

The RMLC is receiving troubling reports from a number of station operators who have received interim fee license quotes from Global Music Rights (GMR).  In its message conveying this offering, GMR makes at least two important misstatements.

 

First, GMR incorrectly asserts that the interim license fee was “negotiated” with the RMLC.  As many of you appreciate, the interim license situation with GMR is unlike negotiations we have undertaken involving ASCAP or BMI.  GMR refused to negotiate the price it will charge stations under the interim license, and we have not undertaken at this point any negotiations that would bind any stations.   Because we believe that the availability of an interim license is an important option to our constituents who had legitimate concern as to infringement exposure related to GMR works, the RMLC ultimately did work with GMR to make an offer to the industry for an interim license for the period January 1 through September 30, 2017.  GMR insisted that any industrywide interim license would need to afford GMR the possibility of securing industry payments totaling $2.5 million per month during the interim fee period (exclusive of licensee payments from any operators who had executed separate licenses with GMR).  GMR mischaracterizes this arrangement as a negotiation with the RMLC.  The RMLC characterizes it as a non-negotiable, take it or leave it proposition from GMR that entailed no negotiation whatsoever as to the level of interim fee.

 

Second, GMR incorrectly states that the quoted interim license fee was “calculated by the RMLC.”  Again, we felt it was important to provide the option of an interim license option for our constituents while we litigate our antitrust claims against GMR.  GMR insisted that it would not offer an interim license unless the RMLC  provided GMR with an interim fee allocation model that would total the demanded $2.5 million per month.  We elected to mirror the revenue-driven structures in place with BMI and ASCAP, on a pro-rata industrywide basis by station.  The RMLC believed that operators would be better served with the RMLC’s input here than to leave the process entirely to the whim of an organization that lacked the necessary resources to drive the process to a rational conclusion.   The RMLC did not dictate and, indeed, has never seen GMR’s final interim fee calculations, nor would the RMLC ever entertain any involvement whatsoever in GMR’s final fee calculations.

 

The RMLC believes that these GMR representations, as to the level of RMLC involvement with their interim license offering, border on bad faith at the very least and are intended to lend an RMLC stamp of approval to the process.  To be clear, the RMLC does not recommend nor disparage GMR’s interim license offering.  Whether or not to pursue the offering (or any other license terms) is an individual choice for each operator to make.

 

Feel free to contact the RMLC office if you have further questions.  Due to the volume of calls to the office on this matter, the preferred method of communication is via email to [email protected]. 

 

Best,