“Even though it falls short of the 1.7 percent Pandora had requested, the company is likely pleased with the 1.85 percent figure; that is what it currently pays, and the decision lifts a cloud of uncertainty at a time when Pandora is struggling to become profitable,” Roberts reports. “The court also rejected the music companies attempt to use Apple, which launched a radio service of its own late last year, as a royalty model. While Apple is rumored to be paying ASCAP a 10 percent royalty rate, Judge Cote ruled that this amounts to an apples-to-oranges comparison, in part because the service is new and because Apple is using it promote its hardware products.”
“The ruling in favor of Pandora may further embitter certain songwriters who blame digital musical services for undercutting artists’ ability to make a living,: Roberts reports. “The bottom line is that the ruling puts Pandora on about equal footing with other radio stations when it comes to paying ASCAP, but the music royalty system still appears deeply distressed and uneven.”
Much more in the full article here.