BMI Files Rate Court Action Against SiriusXM Over Music Licensing Fees

Performance rights organization BMI has filed a rate court action against SiriusXM in an attempt to provide its artists “fair and appropriate fees” for music licensing deals with the radio service.

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In the petition, filed in the Southern District of New York on Thursday, BMI requests to determine a “reasonable rates” for SiriusXM’s public performance of songs in the BMI repertoire. BMI is responsible for licensing over 22.4 million songs and musical compositions, according to the filing.

BMI also cites that this action follows prolonged attempts at negotiations with SiriusXM, who is arguing for reduced payments. BMI points out that Sirius has been in a “secure and successful position” after making changes to its model as a digital service.

“Sirius has continued to pay songwriters — who create the music essential to SiriusXM’s business —at rates that are below those negotiated decades ago when satellite radio was an infant industry with an uncertain future,” the complaint argues. “It is also paying licensing fees at lower rates than other large music users against which SiriusXM competes for listeners. Accordingly, BMI’s affiliated songwriters and composers, and their associated publishers, have been under-compensated relative to their importance to SiriusXM and its current market position.”

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A representative for SiriusXM declined Variety ‘s request for comment.

BMI is requesting the court to determine a reasonable rate for the new license that “must account for material changes that have occurred since the parties negotiated the BMI/SiriusXM-18 License, including SiriusXM’s strong financial performance, its growing emphasis on digital service offerings and its overall place in the music landscape.”

Mike O’Neill, BMI’s President and CEO, said in a statement, “After attempting to negotiate with SiriusXM in good faith for more than two years, we were compelled to file this action given their insistence on underpaying the creators of the music that drives the majority of their business. SiriusXM’s proposal is a clear attempt to rely on a rate that was established when the company was very different in terms of its size, reach, degree of digital focus and revenue growth, and falls well below what is in the best interests of our affiliates. We will continue to fight for fair and appropriate rates when we believe the music created by our songwriters and composers is being significantly undervalued.”

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