Pandora Bests ASCAP in 2nd Circuit


PandoraThe issue was streaming rights paid to benefit clients of music licensing service ASCAP. The PRO believes that digital streaming of music has left composers and other rights holders behind, but Pandora prevailed.

The court ruled that right of ASCAP to up Pandora’s rates were “unambiguously” barred, according to a Reuters report.

The court held that the rules to not allow a PRO to negotiate higher rates for new media, but must keep them at the same level as other users of the music.

The 2nd Circuit ruling upheld an earlier ruling in favor of Pandora at a lower court.

In the earlier ruling, Judge Denise Cote held that Pandora was to pay 1.85% of revenue to ASCAP. The PRO had proposed escalating Pandora’s rate to 3% over time.