January 2011
Dear Songwriter, Composer and Publisher:
We’re happy to kick off 2011 with advances in how we compensate you for the use of your creative property. We are building on BMI’s history of innovation with new distributions, and, as always, we remain vigilant in protecting your rights.
This month, we launched BMI Live, an exciting program enabling performing songwriters to register their concerts and set lists online for royalty payments. BMI will pay royalties to both writers and publishers via direct deposit in its June 2011 distribution for performances occurring from July 1 through December 31, 2010. Detailed information on all aspects of this new program can be found in an extensive FAQ available online at bmi.com/live. Live performances eligible for the June 2011 royalty distribution must be registered on the BMI website by March 31, 2011. The distribution from BMI Live will be made quarterly; again, further information on the program is available online at bmi.com/live.
Among the challenges we are facing in the coming year is the recent decision by the rate court in the BMI v. DMX case. We have appealed this decision. The outcome of this appeal will have an important impact on our revenues from the commercial background music service industry. BMI is also currently in rate-court litigation with radio stations represented by the Radio Music License Committee (RMLC). While an interim agreement with the RMLC has temporarily reduced license fees by $40 million, its members seek to further reduce the fees they pay to BMI. We do not expect this litigation to be resolved until 2012. A similar rate-court proceeding is underway with local television stations represented by the Television Music License Committee. We are not in this alone; the other major U.S. society faces challenges of the same magnitude.
We would like to draw your attention to two special features of this distribution. First, in addition to your regular quarterly royalty payments, this distribution includes retroactive royalties for Distant Signal-Satellite Carrier performances occurring between 1999 and 2007. The Copyright Royalty Board recently finalized payments for this term, making this distribution possible. Distant-signal broadcasts include retransmitted television programming from television “superstations” such as Chicago’s WGN that are picked up and aired by satellite television throughout the country. These retroactive statements are noted on your statement.
In addition, please note that the Foreign section of the statement makes reference to NCB (Nordisk Copyright Bureau), a new royalty source that is administering Internet royalty payments for societies in Sweden, Denmark, Norway, Finland, Iceland, Estonia, Latvia and Lithuania. Where appropriate, you will see the name of the foreign society generating your royalties along with the source name “NCB.”
I’d like to remind those of you using the latest generation of mobile devices to take advantage of the mobile version of our award-winning website, BMI.com, and, later this month, a BMI app from Apple’s App Store. These mobile resources give you secure account access to your royalty statements and catalog of musical works via your smartphone. You can also help us in our continuing efforts to “go green” by signing up online for direct deposit of your royalties and choosing to receive your royalty statement electronically, eliminating paper and securing instant access to both your royalty payments and statements.
I hope you had a Joyful holiday season and I wish you and your loved ones a Happy, Healthy New Year.
Sincerely,
Del Bryant
President
Chief Executive Officer