Music Business Worldwide is reporting that GMR has drafted in renowned US lawyer Daniel Petrocelli to represent it in reaction.
In a press release, the RMLC (Radio Music Licensing Committee) said that, if left unchecked, GMR would be able “to charge the U.S. commercial radio industry monopoly prices to publicly perform musical works in the GMR repertory”.
This is a key part of GMR’s business – based on a mantra of earning songwriters the money they deserve vs. more traditional options in the US.
The approach has lured over the likes of Pharrell Williams and Ryan Tedder from the likes of ASCAP and BMI since it launched in 2013.
ASCAP and BMI are both not-for-profit performance rights organizations.
GMR’s fellow for-profit PRO, SESAC, settled with the RMLC in summer 2015 following similar litigation to that just launched against GMR.
The RMLC claims that GMR has “created a bottleneck to, and artificial monopoly over, the works in its repertory”.
RMLC seeks injunctive relief, requiring, among other things, that GMR submit to a judicial rate-making procedure comparable to what the consent decrees governing ASCAP and BMI impose.
Along with the complaint, the RMLC has also filed a motion for a preliminary injunction to prevent GMR from charging radio stations monopoly prices for a GMR license while the litigation is pending.