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ASCAP Pandora Rate Decision

ASCAP Pandora Rate Decision

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Published by title17
Final ASCAP rate court decision by Judge Cote, setting ASCAP license rate for Pandora. The Court rejected ASCAP's request for a substantial rate increase and kept the existing rate of 1.85% of revenue.
Final ASCAP rate court decision by Judge Cote, setting ASCAP license rate for Pandora. The Court rejected ASCAP's request for a substantial rate increase and kept the existing rate of 1.85% of revenue.

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Published by: title17 on Mar 19, 2014
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07/10/2014

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UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK -------------------------------------- IN RE PETITION OF PANDORA MEDIA, INC. --------------------------------------- Related to UNITED STATES OF AMERICA, Plaintiff, v. AMERICAN SOCIETY OF COMPOSERS, AUTHORS, AND PUBLISHERS, Defendant. -------------------------------------- X : : : X : : : : : : : : : : : : X 12 Civ. 8035 (DLC) 41 Civ. 1395 (DLC) OPINION & ORDER APPEARANCES: For applicant Pandora Media, Inc.: Kenneth L. Steinthal Joseph R. Wetzel Jason Blake Cunningham Katherine Merk King & Spalding, LLP 101 Second Street, Suite 2300 San Francisco, CA 94105 Jeffrey Scott Seddon King & Spalding, LLP 1185 Avenue of the Americas New York, NY 10036 Mary Katherine Bates King & Spalding, LLP 1180 Peachtree Street Atlanta, GA 30309-1763 Marc Brian Collier Fulbright & Jaworski LLP 98 San Jacinto Blvd, Suite 1100 Austin, TX 78701
Case 1:12-cv-08035-DLC Document 238 Filed 03/18/14 Page 1 of 136
 
2 For the American Society of Composers, Authors and Publishers: Jay Cohen Eric Alan Stone Darren W. Johnson Amy E. Gold Lynn Beth Bayard Paul, Weiss, Rifkind, Wharton & Garrison, LLP 1285 Avenue of the Americas New York, NY 10019 Richard H. Reimer Christine A. Pepe American Society of Composers, Authors and Publishers One Lincoln Plaza New York, NY 10023
Case 1:12-cv-08035-DLC Document 238 Filed 03/18/14 Page 2 of 136
 
3 TABLE OF CONTENTS INTRODUCTION................................................... 6 FINDINGS OF FACT.............................................. 10 I. The American Society of Composers, Authors and Publishers 10 A. ASCAP Background ....................................... 10 B. The ASCAP Consent Decree ............................... 12 II. The Evolution of the Radio Industry ..................... 14 III. The RMLC-ASCAP License Agreement for the Period 2010-2016 ................................................... 19 IV. Pandora ................................................. 23 A. Pandora’s Music Genome Project ......................... 23 B. Pandora Premieres ...................................... 25 C. Pandora’s Comedy Programming ........................... 26 D. Pandora’s Revenue ...................................... 26 E. Pandora’s Competitive Environment ...................... 27 V. Pandora’s Licensing History with ASCAP ................... 30 VI. The April 2011 ASCAP Compendium Modification ............ 34 A. Overview and Context ................................... 34 B. Public Performance Rights for Compositions versus Sound Recordings ................................................ 35 C. ASCAP-Publisher Negotiations Prior to the Compendium Modification .............................................. 39 D. The Compendium Modification Allowing New Media Withdrawals is Enacted. ............................................... 46 E. ASCAP Provides Administrative Services for Withdrawing Publishers. ............................................... 49 VII. A Second Compendium Modification in December 2012: the “Standard Services” Agreement ............................... 51
Case 1:12-cv-08035-DLC Document 238 Filed 03/18/14 Page 3 of 136

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