Pandora Appeals BMI Royalty Rate

Pandora has filed an appeal against the BMI rate court decision that ruled the internet radio platform should pay the PRO 2.5% of its revenues.

While BMI was able to claim the decision as a significant step in the right direction earlier this year, the rate of rival PRO ASCAP of 1.85% was upheld by the US Second Circuit Court of Appeals.

MusicWeek reports Pandora has argued that Judge Stanton, who made the BMI decision, was wrong to disregard the confirmation of ASCAP's rate being set at 1.85% (which BMI had also previously received).

It also suggests that Stanton was wrong take into account benchmarks set by direct deals made between Pandora and publishers, such as Universal Music Publishing, which managed to get a headline rate of 8.5% of revenues.

The appeal document also tries to argue that BMI's public performance rights "are no more inherently valuable today than they were 10 or 20 years ago".