Photo Credit: Eric Nopanen
Lawsuit Filed Against ASCAP Over Radio Royalties
A group of production music owners and publishers, including Alibi Music, Capp Records, and Manhattan Production Music, filed a $123 million lawsuit against the American Society of Composers, Authors, and Publishers (ASCAP) in the New York Supreme Court. The lawsuit was submitted by entertainment attorney Richard Busch.
The plaintiffs claim that ASCAP is unfairly redirecting over $15 million in radio royalties annually from non-feature music owners. This music includes background stock and library music used in broadcasts such as news, sports, and talk radio.
Background on the Allegations
The complaint suggests that ASCAP’s methods for detecting and paying royalties for non-feature music are inadequate. It argues that ASCAP uses subpar detection methods, relying on low-quality feeds from Media Monitors and ineffective audio fingerprinting technology from Soundmouse, which cannot accurately identify music overlaid with spoken word.
The plaintiffs allege that due to these methods, non-feature music songwriters and publishers received payments for only 0.1% of their actual performances on radio between 2021 and 2024.
Specific Case Example
One highlighted example involves New York’s WINS station, where SourceAudio identified over 41,000 individual performances in 2021. Despite these findings, ASCAP reportedly did not compensate for any of these performances, even though WINS paid their licensing fees.
A breakdown, citing SourceAudio data, illustrating ASCAP’s alleged failure to register and pay royalties for non-feature music usages on news, talk, and sports radio stations in 2021. Photo Credit: Digital Music News
Motivations Behind the Allegations
The lawsuit suggests that ASCAP’s board members, who are primarily composers and publishers of feature music, have a commercial interest in diverting royalties away from non-feature music. The board-approved methods allegedly favor feature music, leading to significant underpayment for non-feature performances.
The plaintiffs are seeking compensation for breach of contract and breach of the implied covenant of good faith and fair dealing, totaling $123 million over eight years.
ASCAP has dismissed the lawsuit as “baseless,” emphasizing the board’s role in setting distribution policies.
