Appeals Court Overturns BMI Rate Hike on Live Events

A federal appeals court has overturned a 2023 ruling that instigated BMI’s 138% price hike on public performance royalties paid by members of the North America Concert Promoters Association (NACPA), which includes Live Nation and AEG.

Overruled:

• The US Court of Appeals for the Second Circuit also overturned the 2023 decision by US District Judge Louis Stanton to expand the types of concert revenue that could be targeted by BMI.

• In that ruling, Judge Stanton widened the pool from face value tickets to include secondary sales, VIP packages, and service fees.

• The appeals court said the district court ruling “adopted a definition of the revenue base that had no precedent in the history of the industry without a compelling reason.”

• It added: “And it identified no change in economic circumstances that would justify a rate more than double what NACPA has historically paid.”

• It did, however, concede that BMI is potentially due an increased royalty rate, but not as high as that approved in 2023.

What they said:

• NACPA, in a statement: “This is a great result for performing artists – who bear the brunt of the royalty costs paid to BMI for live concerts – and for concertgoers and the live concert industry.”

• BMI’s statement: “We are unwavering in our belief that our songwriters, composers, and publishers deserve more, and we are evaluating all of our options moving forward, including seeking further appellate review."