DMX Wins Landmark Decision against ASCAP and BMI

  DMX Wins Landmark Decision against ASCAP and BMI

Court ruling opens doors for greater direct licensing practice between
commercial music providers and music industry. Creates environment for broader
exposure of artist content and transparency in licensing.

Business Wire

AUSTIN, Texas -- June 18, 2012

Last week, the Second Circuit affirmed two trial court victories DMX obtained
against performing rights organizations ASCAP and BMI. The ruling resets fee
structures and limits market power long held by ASCAP and BMI.

In order for businesses to legally use music in commercial environments, they
must pay fees to copyright owners. For years, performance rights organizations
such as ASCAP and BMI, together with a third, significantly smaller
performance rights organization called SESAC, had faced little or no
competition in licensing compositions for public performance to music users.
Rather than relying solely on licenses provided by performing rights
organizations such as ASCAP and BMI, in 2006, DMX began directly licensing
musical compositions for use in DMX services. DMX saw this as a way to
compensate publishers directly as well as a way to achieve savings in an
increasingly competitive industry. It also set a precedent allowing publishers
to negotiate and license their music directly with commercial music providers
such as DMX and Muzak.

“This is an important decision for our industry and music publishers,
composers and authors,” said Chris Harrison, Global Director of Content/
Licensing for Mood Media. “We have effectively loosened the middle man’s grip
on licensing and associated performance rights fees. After decades of
imbalance, the playing field is at last fair and consistent.”

Through the court’s affirmation, there is greater incentive for music users to
license music directly. Authors, composers, and publishers will have the
opportunity to increase the exposure of their content through commercial music
channels. Additionally, payments of associated royalties through direct
licensing will be more efficient and consistent with more timely payments and
transparency into the usage of the music.

The new fee structures were incorporated into DMX’s model after the initial
court ruling in 2010. Last week’s decision ensures that the new fee structures
will remain and DMX will continue to be able to pass along greater value to
our clients. “We’re happy that we can continue to provide quality music
programming and services to our clients at affordable and competitive rates.
We’re also excited about what this means for our ability to curate great music
from even more artists and share that with our clients and their customers,”
said Harrison.

Weil, Gotshal & Manges LLP served as legal counsel for DMX, Inc.

About DMX

A Mood Media company, DMX has been designing and delivering brand-enhancing
services to retailers and retail brands for over 40 years. With creative
services and leading delivery technology, DMX designs and delivers unique and
memorable brand experiences for businesses to connect with their customers and
become an integrated part of their lifestyle. The DMX suite of services
includes music services, strategies, and promotions, music licensing, video
and digital signage, audio/visual system design, as well as scent marketing,
and mobile and audio messaging solutions. In partnership with Pandora^®, DMX
brings the industry’s first fully licensed personalized internet radio
specifically for business.

For more information, please visit www.dmx.com.

About Mood Media Corporation

Mood Media Corporation (TSX:MM/ LSE AIM:MM), named Canada’s fastest growing
company by PROFIT Magazine is a leading in-store media specialist that helps
its clients communicate with consumers with a view to driving incremental
sales at the point-of-purchase.

Operating through its two principal divisions; In-Store Media and Retail
Point-of-Purchase; Mood Media Corporation works with 580,000 commercial
locations in over 40 countries throughout North America, Europe, Asia and
Australia. Through its subsidiaries Mood Media, Muzak, DMX and Mood
Entertainment, Mood Media Corporation’s products and services reach 100
million people every day in a broad client base including more than 850 U.S.
and international brands in diverse market sectors that include: retail, from
fashion to financial services; hospitality, from hotels to health spas; and
food retail, including restaurants, bars, quick-serve and fast casual dining.

For further information about Mood Media, please visit www.moodmedia.com.

Contact:

Mood Media Corporation and DMX, Inc.
Chris Harrison, 512-380-8500
Global Director of Content/ Licensing
or
Fleishman-Hillard (Boston)
Ryan Wagner, 617-692-0522
Ryan.wagner@fleishman.com