Pandora Denied FM Radio Rate In BMI Royalty Row

A New York federal judge on Wednesday refused to lower the royalty rate he previously ordered Pandora Media Inc. to pay Broadcast Music Inc., rejecting Pandora's argument that purchasing a South Dakota radio station entitled it to pay a smaller amount.

Without explanation, U.S. District Court Judge Louis L. Stanton denied Pandora's motion to alter his decision ordering the music-streaming company to pay a 2.5 percent royalty rate to BMI.

Pandora argued in June that because it had purchased KXMZ 102.7 FM in Rapid City, SD entitled it to pay the lower rate for over the air broadcasters who also offer streams.

U.S. District Court Judge Louis L. Stanton made the ruling quickly and "without explanation."

Under the judgement Pandora is required to continue to pay BMI a royalty of 2.5%.