Publishers, songwriters and performance rights organizations are at odds over other aspects of the DOJ’s consent decree review beyond the danger of potential unwanted legislation coming from the publishers' request for the selective withdrawal of digital rights from ASCAP and BMI’s blanket licenses.
Exterior of the Robert F. Kennedy Department of Justice Building in Washington, DC.
A couple of years back this became an issue when some publishers withdrew their production music catalogs from PROs like ASCAP and gave them to SESAC to administer, over the objections of some songwriters who wanted to remain with ASCAP. Consequently, in the current process a songwriter groups asked that the DOJ allow selective withdrawal only in instances where the songwriter is given the right to agree to the move.
Meanwhile, some industry executives wonder why some of the indie publishers are signatories on the letter to the DOJ endorsing selective withdrawal. The one instance where that has occurred in the past, didn’t work out so well for the smallest publisher to go that route. For digital services, publishing licenses now are much easier to come by since the consent decrees require PROs to issue licenses to any music user that requests one on the performance side, while publishers can use the compulsory license on the mechanical side, as long as they make the effort to identify and pay the rights owners. But that all goes out the window if the DOJ allows for selective withdrawal.
However, an executive in the PRO camp disagrees with that publisher. “The smaller independent publishers are on a fool’s errand, carrying the water for the majors,” that executive says. “They think direct withdrawal is going to benefit them, but Pandora and BMG proved that entirely false.”
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