Pandora Defeats ASCAP, Music Publishers In Royalty Rate Appeal

It's been a good week for Pandora. First the FCC approved it's purchase of a small radio station that could lead to lower payments to artists; and today it won a court appeal that would have raised some rates retroactively.

A federal appeals court in Manhattan today rejected appeals by ASCAP and music publishers that would have meant higher royalties from 2013 – 2015. ASCAP had appealed the 1.85% rate set to expire at the end if this year.

"Powerful corporate interests, like Pandora, are determined to stand in the way of meaningful music licensing reform so that they may continue to shortchange songwriters," said ASCAP CEO Elizabeth Matthews in a statement. "This is a wake up call for creators to stand together, get involved and fight for their right to be paid a fair market rate for the use of their works.”

"We are pleased that the Second Circuit has affirmed Judge Cote’s ruling, which highlights the anti-competitive harms that can result from a lack of transparency into music ownership," Pandora said in a statement.