Milbank LLP has secured a victory on behalf of music rights licensor BMI against major concert promoters in a case that enables the company’s affiliated songwriters, composers, and music publishers to earn more royalties when their copyrighted songs are performed at live concerts.
In his March 28 opinion, US District Judge Louis L. Stanton of the Southern District of New York awarded a 138% rate increase to 0.5% of an event’s gross ticket revenue and expanded the revenue base to include a percentage of proceeds from venues’ VIP packages and box suites, promoters’ servicing fees, and tickets sold on the secondary market.
Until this decision, the revenue base included only direct earnings from the face value of primary market ticket sales. The updated rate and expanded revenue base apply to the period of mid-2018 through December 31, 2022.
“The decision reflects our client’s belief that those who write and compose music deserve fair compensation for their creative efforts,” Milbank Chairman and Litigation & Arbitration partner Scott A. Edelman said. “We are pleased that Judge Stanton agrees that the live performance industry should recognize the value of those who craft the music that artists perform.”
BMI and the concert industry had been operating under a 25-year-old agreement that required promoters to pay a performance licensing rate of 0.3% of revenue for venues with under 10,000 seats and 0.15% of revenue for venues with over 10,000 seats.
The trial team was led by Mr. Edelman and Litigation & Arbitration partner Atara Miller and included associates Andrew Porter and Katie Cassidy-Ginsberg.
