Oakland online radio business Pandora Media Inc. sued the American Society of Composers, Authors and Publishers over licensing fees for songs, which Pandora says are too high.
The suit, filed in U.S. district court in New York, seeks "the determination of reasonable license fees."
Pandora (NYSE: P) describes itself in court papers as "the leading internet radio service in the United States" and says despite discussions "spanning more than a year" it hasn't been able to strike a deal on final license fees with ASCAP, which is based in New York.
Because several music companies like EMI and Sony have withdrawn parts of their licensing authority from ASCAP, forcing Pandora to renegotiate license deals with them, the company says its blanket fees to ASCAP should be lowered.
Pandora claims, too, that ASCAP's rates with it violate terms given to "new media" companies under the Radio Music Licensing Committee settlement of January 2012.
Pandora's lawyers are Greenberg Traurig LLP in San Francisco.
It seems that the ASCAP's tax rate is way too high. I agree with pandora that they need to take action because at some point the taxes can become a bit ridiculous.
ReplyDeleteSeeing that pandora dosent charge to use thjeir broadcasts its understandable that they would sue, also its understrandable that they would want their fees lowered after 2 major names backed out.
ReplyDeleteServices like Pandora are very popular and should be encouraged by ASCAP. Pandora allows listeners to listen to music and exposes them to music that maybe they wouldn't normally be exposed to. This increases music sales by expanding the music distribution. The licensing fees should be lowered because Pandora actually helps ASCAP, so ASCAP should work with them.
ReplyDeleteI believe that Pandora is fully jusitified in exercising this right. If they their contract with these media companies is being violated, they cannot be stopped or criticized for their actions.
ReplyDeleteI believe that ASCAP and Pandora both have an argument here. ASCAP has the right to make their own prices for their music but they must be reasonable. If Pandora wants to play the music then they must negotiate to find a reasonable price for the music.
ReplyDelete-Popo
Pandora sued the American Society of Composers for high license fees. I think its smart because everyone likes Pandora and finds new music from there. The fees shouldn't be high because its a good profit.
ReplyDeleteI think that Pandora is over reacting. They have no reason to sue the American Society of Composers. If Pandora is pissed off they can negotiate for a lower price. #yolo
ReplyDeleteSean Weldon
If they are in a contract with the ASCAP and they are setting the rates too high. Pandora is jusitified to say that the rate should be lowered.
ReplyDeleteI can see the argument from both sides. ASCAP has the power and the right to adjust their prices to what they feel Pandora would pay them for the liscensing agreements. Then again, Pandora directly helps ASCAP by broadening the different types of music that people will listen to. That being said, ASCAP should lower the liscensing fees because Pandora helps ASCAP.
ReplyDeletethe rates for these songs are unreasonable. pandora is providing exposure for these artists, as well as providing a free service for its users. the prices are too high and pandora seems to be completely justified
ReplyDeleteI'm taking Pandora's side on this argument. Honestly ASCAP should reason with Pandora for their own sake. Pandora probably brings a high revenue to ASCAP because the listeners are exposed to music that they may have never heard before and like it, this will most likely make them go buy it. If the ASCAP really wants to lose that kind of publicity then they can keep their own pricing, but if they want a higher revenue and a broader selection of listeners then they should find a way to reason with Pandora.
ReplyDeleteI agree with Pandora for suing because they do help newer artists get exposed and by ASCAP taxing more Pandora might limit Pandora to getting new artist out there.
ReplyDelete-Kayla
I think that Pandora needs to fight for this. They have a right to fight ASCAP in this situation. In the long run, I think Pandora will win this case and licensing fees will be lowered.
ReplyDeleteI think that Pandora is justified in their lawsuit. Pandora is demanding lower rates, but rather reasonalbe license fees. If ASCAP doesn't lower their fees, then they are hurting themselves. Pandora woul eventually go out of business and the music under ASCAP would have less exposure. It would benefit both parties if ASCAP lowered their fees.
ReplyDeletePandora is right, they have the right to fight, pandora will win this and the fees will be lowered.
ReplyDeleteAlex Colter
I think it is alright for Pandora to sue ASCAP. If the music is priced to high, then try to lower them. Pandora is already producing free product for the public (free music), so they should do whatever is neccessry to keep that a reality.
ReplyDeleteI think Pandora is in the right here to sue. They are doing a good thing with how they produce and allow people to listen to music. I think if it wasn't free then people wouldn't listen to it as much.
ReplyDeleteASCAP has the right to charge Pandora as much as they want. The federal government cannot control the price at which ASCAP. The government controlling a private entity sounds like communism to me.
ReplyDelete-Peter Kolb
I agree with Pandora, the should sue ASCAP. Pandora has the right to demand lower rates. If ASCAP doesn't lower their fees, its only going to dig them a bigger hole.
ReplyDeleteDERRICK MCLEAN
The ASCAP should be able to charge as much as they want. Although they shouldn't be jerks clearly over charge, but if pandora wants what the ASCAP they have to be willing to purchase it. - - - Ben Paulson
ReplyDeleteIt is all about paying your fees in order to run your business. They did not make the music therefore they need to pay to use it. Nothing in life is free and they need to pay the asked price to keep producing it.
ReplyDeleteI agree that pandora should fight for this to get the fee lowered
ReplyDeleteI can see both sides but it makes sense that pandora should have to pay something because they are using other peoples music;however, the ASCAP should be reasonable and not jerks about the whole situation
ReplyDeleteThey definitly need to lower thier terms if they no longer provide all of the access to the songs Pandora needs. If they have a lot less to offer, then how can they expect to receive the same amount of money.
ReplyDelete