Pandora has filed a lawsuit against music industry body the American Society of Composers, Authors and Publishers (ASCAP) over online royalties. The internet radio station entered an agreement with ASCAP, which represents a host of record labels and individual artists, in 2005, but does not feel it earned a fair amount from the contract, reports The Register.
Pandora argues that the royalty rates it was being charged prevented it from being profitable, pointing out that other online radio stations have been offered more lucrative deals by the trade body.
National Music Publishers’ Association president David Israelite has criticized the online radio firm over the lawsuit, calling its complaint “outrageous”. He said: “It’s outrageous Pandora would try to reduce the already nominal amount they pay songwriters and music publishers, when Pandora’s business model is based entirely on the creative contributions of those songwriters. To file this suit at the same time that Pandora’s founders are pocketing millions for themselves adds insult to injury.”
Pandora previously pledged its support to the Internet Radio Fairness Act, a piece of legislation that seeks to cut the amount of royalties paid to musicians by 85% and reform licensing in the internet radio sector.