Report: Judge Rules Pandora Royalty Rate Remains Unchanged

A federal judge on Friday left unchanged the royalty rate that the streaming service Pandora pays songwriters, a move that may fuel efforts by music groups to change the decades-old government regulation over licensing.

At to The NY Times, Judge Denise L. Cote of Federal District Court in Manhattan ruled on Friday that for each year from 2011 to 2015, Pandora must pay 1.85 percent of its revenue to the American Society of Composers, Authors and Publishers for the use of its members’ music, according to a statement by the society, better known as ASCAP, which was sued by Pandora in late 2012.

While ASCAP revealed Judge Cote’s rate determination, her full decision remains under seal for the parties to review for potential redaction of confidential information.

ASCAP, which represents millions of songs, had asked the court to raise Pandora’s royalty gradually from 1.85 percent, its current rate. Pandora sought a rate of 1.7 percent, which is what most commercial radio stations pay. The difference represents a potential shift of millions of dollars for the whole industry, and the case came to symbolize the economic conflict between technology companies and the traditional music industry.

A spokesman for Pandora said the company could not comment until the decision was released. Pandora faces a similar trial against BMI, scheduled to begin later this year.

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