BMI Files Action in Rate Court Against SiriusXM for Attempts to Lower Payments

BMI files action in rate court against SiriusXM for ‘attempting to lower its payments to BMI songwriters, composers, and publishers.’

Today, US performance rights organization BMI has filed an action in its rate court to determine fair and appropriate fees for a license with satellite radio service SiriusXM. According to BMI, despite years of negotiations, SiriusXM is “attempting to lower its payments to BMI songwriters, composers, and publishers, ignoring BMI’s preeminent market share, changes in the marketplace, SiriusXM’s product evolution towards a digital service, and the company’s strong revenue growth.”

“BMI’s songwriters and composers should not have to accept an outdated rate that significantly undervalues their music, which provides the very foundation for SiriusXM’s programming,” said BMI in a statement.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,” said Mike O’Neill, BMI’s President and CEO.

“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.”

BMI’s petition, filed in New York court on September 12, points out it licenses the public performance rights in the US of over 22.4 million songs and compositions. The rights organization operates per a Consent Decree, citing Article XIV(A) which “requires BMI to quote music users what BMI deems to be reasonable fees and terms for requested licenses. If BMI and a music user are unable to agree on license fees and terms, either party can petition [the court] to evaluate the reasonableness of BMI’s rate quote and, if necessary, set the reasonable fee and terms.”

On May 8, 2023, BMI quoted fees and principal terms deemed reasonable for a BMI license for the period of January 1, 2022 through December 31, 2026, but the parties were unable to reach an agreement. The performance rights organization’s petition to the court asks for determination that the rates it quoted for the license to SiriusXM are reasonable, or an order outlining what reasonable rates would be for the BMI repertoire.