San Francisco
– A federal court has rejected a proposed licensing structure from performing
rights organization ASCAP that would have greatly increased royalties paid by
MobiTV for music performance rights associated with TV and radio content it
delivers to mobile devices.
ASCAP was seeking a rate structure that would have
resulted in MobiTV’s paying more than $41 million in fees for the period from
its launch through 2011.
The U.S. District Court for the Southern District of
New York instead established a fee framework that draws from existing licensing
deals between ASCAP and cable TV networks.
MobiTV’s attorneys said the ruling
will establish fees due to ASCAP from MobiTV that "are less than 2% of
what ASCAP sought."
"Ultimately, we believe this will help clarify
the cost structure of mobile content distribution, which is an issue much bigger
than MobiTV, and, as an industry leader, we felt it was of great importance to
take on this cause, which will also benefit consumers in the long run,"
said MobiTV CEO Charlie Nooney.
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