Online music services could pay $100 million in royalties




By Eric Auchard



Time Warner IncAOLRealNetworksYahoo Inc


The move could force the three online services to pay
royalties to the American Society of Composers, Authors and
Publishers (ASCAP) worth 2.5 percent of their music revenue
dating back to 2002, ASCAP said.


The decision by a judge in the U.S. District Court for the
Southern District of New York sets a formula for potential
license fees on songs played by the three online services from
July 1, 2002 through December 31, 2009, the trade group said.


But Bob Kimball, the general counsel for defendant
RealNetworks, said the federal court ruling provided only a
framework for talks on potential royalties.


"This is a long way from being over," Kimball said. "To be
clear, the court did not award $100 million in royalties."


Marilyn Bergman, the chairman of ASCAP, which has a
membership of 320,000 song writers and publishers, said the
decision goes a long way to protecting writers' and composers'
rights to be compensated fairly.


Bergman is an Academy Award-winning lyricist who has worked
with Quincy Jones, Marvin Hamlisch and Frank Sinatra.


The ruling does not cover licensing rights held by music
labels, ASCAP said.


Kimball of RealNetworks said the court had provided a
"general and incomplete formula" that will require further
negotiations to figure out how to apply it to different
businesses.


He said an extended appeals process was likely once the
trial court decision is final.


Spokesmen for AOL and Yahoo were not immediately available
to comment.


A copy of the court decision can be found
at:http://www.ascap/press/2008/0430_ratecourtdecision.aspx/.


(Reporting by Eric Auchard; Editing by Louise Heavens)

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