Music Licensing Group, Mobile Carriers Close to Royalty Deal, Lawyers Say
A licensing organization is near a settlement with two of the largest mobile-phone companies on payments for music over wireless devices, lawyers for both sides said in court.
The American Society of Composers, Authors and Publishers, Verizon Communications Inc. and Ericsson Inc. are close to an agreement, their lawyers said today at a hearing in New York. Ascap hasn’t reached agreement with another carrier, AT&T Inc., its lawyer said.
“We’re almost at the finish line, particularly with Verizon and Ericsson,” said David Leichtman, who represents New York-based Ascap. “We’re at an impasse with AT&T. We may need some assistance from the court.”
Licensing groups are fighting for as much money as they can for songwriters and publishers as sales of physical products such as compact discs are declining. Digital transmission of music, through mobile ringtones and streaming services, is seen as an area of revenue growth for the music business.
Ascap is required by a consent decree to settle disputes over royalties with providers of music in U.S. District Court in New York.
“We’ve made progress,” Joseph Petersen, a lawyer for Dallas-based AT&T, told Judge Denise Cote. Three issues remain for AT&T, he said.
One is how to account for revenue from future video services AT&T plans to offer on wireless phones, Petersen said.
More Negotiations
Cote told the lawyers to continue negotiations for two weeks, then meet with a magistrate judge if necessary to settle remaining issues. If disputes remain, both sides are to submit briefs by Dec. 17, and a hearing will be held in January, she said.
The setting of licensing rates in federal court is the result of an antitrust suit the U.S. government brought against Ascap in 1941.
The case is In Re: In the Matter of the Application of Cellco Partnership d/b/a Verizon Wireless for the Determination of Reasonable License Fees, 1:09-cv-07074, U.S. District Court, Southern District of New York (Manhattan).
To contact the reporter on this story: Don Jeffrey in New York at djeffrey1@bloomberg.net.
To contact the editor responsible for this story: David E. Rovella at drovella@bloomberg.net
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