May 13, 2008

Streaming Rate - ASCAP

ASCAP license fee dispute over streaming digital services, rate holding here. USA v. ASCAP, No. 41-1395 (WCC) (S.D.N.Y., White Plains, opinion and order 4/30/08):

"[T]he fee for a blanket license for unlimited performance of all music in the ASCAP repetory for all open periods to December 31, 2009 shall be determined by multiplying the total revenue of the licensed business unit ... less customary deductions for advertising sales commissions and traffic acquisition costs, by a music-use-adjustment fraction whose numerator is the total number of hours music is streamed to users by the licensee ... and whose denominator is the total number of hours of use of the licensee's website ... and applying to the resulting music-use-adjusted revenue a fee rate of 2.5%."

[See conclusion].

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