Sesac License Agreement

It includes a flat-rate fee of 0.2557% of net turnover; and a rate of all trade of 0.0575% of turnover The agreement advances the tariffs and conditions of the previous license, which were themselves the result of an arbitration procedure conducted by the parties. RMLC President Ed Atsinger said, “We are delighted to see the terms of the previous agreement with SESAC for carry forward, which is an effective path for both parties in an increasingly complex music licensing landscape.” Correction, 25.08.2020 14h30: Shortly after posting this article, I was told that the new SESAC agreement was valid for 4 years – from January 2019 to December 2022 – and not three years like the previous license. Thus, the references in this article to the date of expiry of the new agreement have been corrected. SESAC and the Radio Music License Committee (RMLC) have announced a new licensing agreement setting out the rates to be paid by the majority of U.S. commercial terrestrial radio stations for the public performance of works in the SESAC repertoire with effect from January 1, 2019 to December 31, 2022. “We appreciate the DPR`s cooperation in reaching a new agreement that will improve the livelihoods of the creative community.” The agreement continues the rates and terms of the previous license, including a flat fee of 0.2557% of net sales and a rate of 0.0575% of turnover. The agreement still applies to over-the-air broadcasts, simulcast streams and HD signals from channels. Kelli Turner, President and COO of SESAC, said: “As a performance rights organisation, we continue to focus on adding value to our songwriters and publishers – which has become increasingly important in these uncertain times. We appreciate the CCPR`s cooperation in finding a new agreement that will improve the livelihoods of the creative community. This agreement still applies to over-air broadcasts, simulcast streams and HD signals emitted by broadcasters.

With the agreement reached with SESAC, combined with the agreement reached earlier this year with BMI and an agreement reached at the end of 2016 with ASCAP (see our article here), the commercial radio industry has entered into agreements with the main performing rights organizations, with the exception of Global Music Rights (GMR). As we`ve written before, GMR and RMLC in California are trapped in an antitrust lawsuit that likely won`t be resolved until next year by the court of law – and perhaps it will appeal years later, unless a settlement is reached. In the meantime, the commercial radio industry continues to work with interim licences for which stations pay the royalties set by GMR. Watch the progress of this case. And watch the industry return to the negotiating table next year for the next licensing round, as the ASCAP and IMC agreements expire at the end of 2021 with SESAC next year. Note that many specialized press articles say that the agreement covers the public performance of SESAC music, not only on over-the-air radio, but also in broadcasters` streams and other “new media broadcasts”. These new media broadcasts also include “radio-style podcasts” in accordance with the terms of the agreement. As we saw in RMLC`s recent licensing agreement with BMI, these agreements cover public performance rights in a podcast, but it`s not the only music license you need to use music in a podcast. Since podcasts are downloadable and playable on demand and the synchronization of music and language is a single recorded work, the rights under copyright law to make reproductions and probably the right to make derivative works of these recordings must be safeguarded. These rights must come directly from the copyright holders both in the musical composition (the lyrics and music of a song) and in the sound recording (that song, as recorded by a particular band or singer). .

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