Judge Denies Pandora Lower BMI Royalty Rate

A New York federal judge on Wednesday refused to lower the royalty rate he previously ordered Pandora Media Inc. to pay Broadcast Music Inc., rejecting Pandora's argument that purchasing a South Dakota radio station entitled it to pay a smaller amount.

Law 360 reports this a.m. that "without explanation, U.S. District Court Judge Louis L. Stanton denied Pandora's motion to alter his decision ordering the music-streaming company to pay a 2.5 percent royalty rate to BMI. "

Pandora had been seeking a rate of 1.7%, but Judge Stanton ruled the webcaster couldn't be compared to a traditional radio station.

Judge Stanton, presiding over the heated battle between Pandora and BMI that began in February over licensing rates for the PROs music, has ruled that Pandora should pay 2.5 percent of its revenue rate for the performance royalty, in exchange for the blanket license supplied by BMI back in May.

Pandora then appealed the ruling. Yesterday, Pandora lost that motion.


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