Pandora Media a radio business on the Internet, which is currently suing the group ASCAP, a performing rights organization, over its song licensing rates, was sued by ASCAP’s largest competitor, which is asking for fees that are more expensive.
In a Manhattan federal court, Broadcast Music, Inc said in court documents that it had proposed a blanket fee for royalty it said was reasonable for the songs played on Pandora’s site, whose radio service is the largest on the Internet.
In court documents, Broadcast said Pandora had rejected its offer. The specific amount of the proposed fee for royalties by BMI was not mentioned in the filing.
BMI insists its fee proposal was in an amount that would be reflective of today’s explosive growth in the internet streaming marketplace.
BMI has over 600,000 publishers, composers and songwriters that it licenses rights for more than 7.4 million compositions. Included in that list of famous performers are Michael Jackson, Lady Gage, Eminem and John Adams.
Last November, Pandora filed suit against ASCAP or the American Society for Authors, Composers and Publishers seeking reasonable licensing fees to play the songs from members of ASCAP on their internet service.
The New York federal court already has approved rates for licensing between different performing rights groups and the licensing committee that is the representative for terrestrial broadcasters like CBS. Also covered in the rates in the agreements are Internet stations operated by the companies.