AOL, RealNetworks, Yahoo Owe $100 Million For Digital Music Services

May 1st, 2008 | By | Category: Making Money with Podcasts, Podcasting Law

The United States District Court for the Southern District of New York today made public a decision in the proceeding to determine reasonable license fees to be paid to the American Society of Composers, Authors and Publishers (ASCAP) by AOL, RealNetworks and Yahoo! for their online performance of musical works. Total payments to be made to ASCAP and its membership by these three services for that time period could reach $100 million

The decision covers license fees for periods starting as far back as July 1, 2002, and continuing through December 31, 2009, for the performance of musical works in the ASCAP repertory by AOL, RealNetworks and Yahoo.

“It is critical that these organizations share a reasonable portion of their sizable revenues with those of us whose content attracts audiences and, ultimately, helps to make their businesses viable,” said ASCAP President and Chairman, Marilyn Bergman. “This decision will go a long way toward protecting the ability of songwriters and composers to be compensated fairly as the use of musical works online continues to grow.”

While the decision may be a boon for songwriters, it may limit the growth of Internet music offerings.

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2 Responses to “AOL, RealNetworks, Yahoo Owe $100 Million For Digital Music Services”

  1. Syd says:

    Wow, they really need to start using more music that they won’t owe anything for, if for no other reason than to make it impossible to estimate how much they owe.

  2. allen wretch says:

    I’m sick of this sort of BS from musicians and their cronies.

    How can you wait six years and then say – oh by the way, you owe us $100 million?

    Who’s going to want to do anything with music online, when musicians get away with that?

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