New Service Grandfathered For Pre-1998 Royalty Rates

SoundExchange v. Muzak, No. 15-cv-476 (D.D.C. filed Mar. 8, 2016).

The Court held that Muzak, a grandfathered "preexisting subscription service" under 17 USC 114, enjoyed a favorable royalty rate -- not subject to the  "willing buyer/willing seller" standard -- for its SonicTap service even though that service was not offered at the relevant statutory date.  Interpreting the statute, the Court found that Congress intended to permit preeexisting subscription services to expand their offerings.  This ruling was also consistend with the legislative history and findings by the Register of Copyrights.

Muzak Bankruptcy

Muzak Holdings LLC filed for Chapter 11 Bankruptcy in the US Bankruptcy Court for the District of Delaware. Top 30 unsecured creditors include: Universal Music Enterprises, EMI Capitol Records, ASCAP, Sony Music, Virgin Records, Harry Fox, Rhino Entertainment, SESAC, and BMI.