GMR Reports Just Two Deals With Radio Groups

Global Music Rights—the upstart performance rights organization that sued the Radio Music Licensing Committee last week, alleging it’s essentially an “illegal cartel”—has told the court it’s only been able to sign two radio groups to licensing deals.

And according to InsideRadio, the identity of those two broadcasters has now been revealed and both have ties to GMR founder Irving Azoff.

In an interview with Rolling Stone the music industry veteran says GMR has signed deals with iHeartMedia and Townsquare Media. What led both companies to break ranks with the rest of the industry isn’t clear.

iHeartMedia declined to comment while Townsquare didn’t respond to an email seeking comment.

But, InsideRadio adds,  Azoff has an inside track at both broadcasters. He’s closely aligned with the Madison Square Garden Company, which acquired a 12% stake in Townsquare Media in August. At the time of MSG’s acquisition the company said it was Azoff who brought a potential partnership to its attention. He saw it as a way to leverage Townsquare’s live events business with Azoff MSG Entertainment—the live event business created in partnership between MSG and Azoff. “I have had the opportunity to work with Steven [Price, chairman and CEO] and the Townsquare team closely this past year,” Azoff said in August. These guys really excel and are a perfect complement to what we are building.”

Meanwhile, Azoff has filled a seat on iHeartMedia’s board of directors since 2010 when the company tapped the former Live Nation chairman and artist manager (The Eagles, Christina Aguilera, Van Halen, Steely Dan) because of his experience in the live entertainment and music industries.

GMR alleges in an antitrust lawsuit that the RMLC’s coordinating on behalf of the radio industry has resulted in “artificially low” fees paid by stations for use of music. GMR’s rate demands are reportedly 30% higher than what ASCAP and BMI collect. It’s asking a federal court to step in to block the RMLC from negotiating on behalf of the industry as stations are being approached by GMR demanding they sign licensing deals or be risk of getting sued for copyright infringement with statutory damages of up to $150,000 for each song played without a license. Despite that threat the organization said in a complaint filed in U.S. District Court in Los Angeles that just a handful of companies have inquired about obtaining a direct license.

The RMLC last month filed an antitrust lawsuit of its own, alleging GMR has created an “artificial monopoly” to squeeze higher rates from stations. “GMR is an unlawful monopolist that is deploying a calculated scheme to extort the U.S. commercial radio industry,” the RMLC said in its suit filed in federal court in Philadelphia.