Court caps off ASCAP interim fees, saving radio $40M

The radio industry came home from court with a new ASCAP rate that will take effect in June or July and will remain in effect until a new rate is negotiated or imposed. The Radio Music License Committee says it will save the industry about $40M in annual fees.
RMLC’s Executive Director, Bill Velez, commented, “We are pleased that the Court has afforded significant fee relief to the radio industry even as the litigation continues. We view this as an important first step towards a return to reasonable fee levels for the industry that reflect current economic conditions.”
Judge Denise Cote handed down the new rate, a reduction of the prior interim fee that both parties settled on back at the beginning of the year.
Although a reduction in the monthly bill will be a nice bonus for radio stations, it will not have a long-term effect. When a new fee is determined, it will be retroactive to 1/1/10, meaning whatever has actually been paid will be adjusted to reflect the eventual official rate.
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