Appeals court overturns BMI live music royalty victory

A federal appeals court just torched the landmark royalty bump that would have more than doubled what US concert promoters pay songwriters.

BMI's big rate court win gets tossed

• BMI celebrated a 138% royalty hike back in 2023.
• Second Circuit judges called those rates unreasonable.
• Judge Louis Stanton's original ruling got vacated entirely.
• Rates had jumped from roughly 0.21% to 0.5%.

Revenue definition was a sticking point

• Stanton stretched gross revenue beyond ticket face value.
• VIP packages and resale market sales were folded in.
• Appeals judges said that the expansion lacked any precedent.
• NACPA and Live Nation fought the broadened scope.

Benchmark comparisons drew sharp criticism

• Stanton leaned on SESAC and GMR rate data.
• Neither outfit operates under antitrust consent decrees.
• Previously negotiated BMI and ASCAP rates got undervalued.
• NACPA's collective bargaining muscle historically kept rates lower.

Case heads back for a rate redo

• Southern District of New York gets another crack.
• BMI hinted at pursuing further appellate review.
• Appeals court suggested rates could still climb significantly.
• NACPA called the reversal a win for live-music artists.

BMI stays defiant on songwriter pay

• BMI insists creators still deserve better compensation.
• The court acknowledged free-market rates belong in calculations.
• Potential new rates might land 50-80% above prior levels.
• Live Nation faces a separate DOJ antitrust trial soon.