ASCAP – The American Society of Composers, Authors and Publishers have announced today (May 12th) that they have agreed to pay $1.75 million and change its licensing practices to settle the U.S. Department of Justice’s claim that it violated an earlier antitrust settlement.
Elizabeth Matthews, ASCAP CEO says…
“Settling this matter was the right thing to do for our members… with these issues resolved, we continue our focus on leading the way towards a more efficient, effective and transparent music licensing system and advocating for key reforms to the laws that govern music creator compensation.”
ASCAP says that the settlement agreement addresses concerns expressed by the Department of Justice with exclusivity provisions that were included in some historical agreements with ASCAP members. The exclusivity provisions were never enforced and have been removed from all agreements.
The Agreement maintains the current ASCAP Board of Directors structure of 12 songwriter/composer members and 12 music publisher members elected by the membership, which has been in place for 95 years, while ensuring that publisher board members do not participate in the approval of new licensing agreements.
Paul Williams, ASCAP President and Chairman added…
“We took immediate steps to resolve this matter and have strong controls in place moving forward…this settlement enables ASCAP to focus on our mission of protecting the rights of music creators, who depend on us for their livelihoods, and to maintain our unique status as the only member-owned and governed performing rights organization in the U.S.”
The Settlement Agreement was approved by the ASCAP Board of Directors and is now subject to the approval of the ASCAP Federal Rate Court Judge.
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