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Posted by on Jun 14, 2013 in Companies |

Pandora Sued for purchasing an FM radio

Pandora Sued for purchasing an FM radio

(Cc) Mr. T in DC / Flickr

bought yesterday FM radio station in an attempt to fend off the record and pay less for the rights. The reason behind this is that radio stations pay less than Internet radio to transmit the same songs, even when they both do the same thing.

The ploy seemed “a mockery” to Broadcast Music Inc., known as BMI, which collects music licensing payments for songwriters and composers. filed a lawsuit in a court in New York accusing Pandora of acting in bad faith to renegotiate new music licensing.

“The trick of Pandora mocks licenses,” says BMI in its application. In a statement added that asked the court to establish “reasonable rates guided by the market” to Pandora, after direct negotiations fail.

Pandora acquired KXMZ-FM station of Rapid City, South Dakota. Terrestrial radio operators to transmit internet also pay lower rates than companies that are online only. By buying the radio station, Pandora expect to qualify in the first definition when setting rates.

The fight between Pandora and the record regarding what should be considered a “fair price” takes several months stretching. “This is not a case that Pandora wants to pay less. It is a case of discriminating against Pandora seals, “said the company in a statement to The Hollywood Reporter.

Link: BMI files suit against Pandora (Hollywood Reporter)

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