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SESAC Copyright Fees to Increase - A Little


In his Broadcast Law Blog, noted communications attorney David Oxenford is reporting that the Radio Music Licensing Committee has reached an agreement with SESAC. The result is a modest increase in fees. SESAC wanted to double its rates. Importantly, the modest increase will be retroactive to 2023. According to the blog:

“In a Press Release dated November 1, the Radio Music License Committee announced that its arbitration with SESAC over royalty rates for commercial radio stations resulted in a modest increase in royalties.  The royalites for the period January 1, 2023, through December 31, 2026, will increase from .2557% of revenue to .2824%.  The RMLC considers this a “win” as the decision rejected SESAC’s proposal to almost double its rates.  According to the press release, SESAC’s proposal for an increase was based “upon licenses secured by other licensors of music rights, both in and outside of the broadcast radio space.”  This presumably means that the arbitrators rejected proposals to use GMR rates as a benchmark for those of SESAC. With proceedings to determine the ASCAP and BMI royalties pending, the rejection of the GMR rates as a standard may be an important precedent.  The modest increase in SESAC’s fees is retroactive to January 1, 2023, so all licensees can expect a “true-up” payment for the higher rates when all details of the new license are finalized.  Look for more details on the implementation of the new rates in the near future.” 

You can access the Broadcast Law Blog here.

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