Updated 8:15 a.m.: ASCAP CEO Elizabeth Matthews has released a statement regarding the Department of Justice’s ruling. Her full commentary is published below.

The Nashville music publishing community responded with disappointment, shock and surprise when the Department of Justice unexpectedly introduced a 100 percent licensing model involving PROs.

The decision on 100 percent licensing means that a song co-written by an ASCAP songwriter and a BMI songwriter would be available to license with approval from just one PRO. It also means that if a songwriter owns only a portion of the song, he or she can license the full song, as long as that songwriter ensures the other credited writers are getting paid. Under the current system, known as fractionalized licensing, each copyright owner in the song takes care of licensing their portion.

Meanwhile the ruling declined requests from major publishing companies to have a right to negotiate licensing rates with digital music providers like Pandora and Spotify. The original consent decree was enacted in 1941, and pertained specifically to ASCAP and BMI, but the music industry has lobbied for the last two or three years to modernize the law. Their requests were all denied in the ruling.

Technically, both PROs must consent to the changes. The next step is approval from federal rate court judges.

Following the announcement of these decisions on Wednesday (June 29), BMI President & CEO Mike O’Neill, Sony/ATV Music Publishing President/CEO Martin Bandier, and Bart Herbison and Lee Thomas Miller from Nashville Songwriters Association International (NSAI) offered statements expressing their disappointment.

Elizabeth Matthews, CEO, ASCAP:
Yesterday, ASCAP and BMI met jointly with the Department of Justice Antitrust Division to hear the government’s proposal regarding our respective consent decrees, which have been under formal review for nearly three years.

As several news reports have mentioned, the DOJ’s current proposal would require that ASCAP and BMI license all songs in our respective repertories on a 100% basis, ending the long-standing industry practice of fractional share licensing.

Unfortunately, the DOJ indicated that because of the complexities of the transition to this 100% licensing requirement, it will not consider the updates we requested to our consent decrees at this time but, instead, may revisit those issues after a transition period.

We strongly disagree with this view and we are disappointed that the DOJ has chosen to focus on this issue, which was not raised by any of the parties to the decrees. Rather than fostering more competition and innovation in the modern music marketplace, we believe that this approach will only create confusion, chaos and instability, harming both music creators and users. Even more troubling is the fact that the government chose this path, despite the fact that more than 15,000 songwriters and composers, as well as the US Copyright Office, members of Congress and others in the industry, registered their strong opposition to 100% licensing with the DOJ.

ASCAP, BMI and key industry stakeholders each have a team of legal experts evaluating this proposal, and we are considering all options, including legislative and legal remedies.

ASCAP takes great pride in being the only PRO owned and run by its music creator members, and we will proceed in a way that is best for our members – the songwriters, composers and publishers who are the foundation of the music industry – and in a way that moves the industry forward.

Mike O’Neill, President & CEO, BMI:
Yesterday, BMI and ASCAP met with the Antitrust Division of the Department of Justice to hear its proposal regarding our respective consent decrees. After almost three years of deliberation, the DOJ is recommending no changes to the current decrees. In addition, it has determined that the PROs must follow a 100% licensing model, a practice that has never been the industry standard and one that presents numerous challenges for the marketplace. We have informed the DOJ that we are evaluating its proposal and will get back to them in the near term.

We are disappointed with the DOJ’s recommendation, which after years of hard work and discussion brings us no closer to much-needed consent decree reform than when we started. Instead, the DOJ chose to address only the issue of 100% licensing, a concept we never raised and one that the marketplace has worked out on its own over the last half-century. We are surprised that the DOJ feels it needs to restructure a world that is efficient into one that we believe won’t be. We are also extremely disappointed that the DOJ did not take in to account the nearly 13,000 BMI songwriters who strongly voiced their concerns over a shift to a 100% licensing model and the creative and financial impact it would have on their ability to create music.

While we had hoped for a different outcome, we will continue to make every effort to reach a mutually agreeable solution with the DOJ. The DOJ realizes that change of this magnitude is not an easy process and it intends to give the PROs at least a year to work through the challenges presented by its proposal. We will evaluate all of our options consistent with our core mission to protect the value of music and the creative freedom of our songwriters top of mind.

Bart Herbison, NSAI Executive Director
“This would create Armageddon in the professional songwriter community. Since one performing rights society does not hold information on co-writers who are members of other societies, there is no effective way to make sure those co-writers are paid. Administrative costs will soar and there is a strong likelihood that songwriters may now only write with songwriters from the same performing rights society.”

Lee Thomas Miller, NSAI President:
“If accurate, this is unimaginable and the worst possible outcome for songwriters. Earlier this year in Washington D.C., I explained to DOJ that our profession was already decimated and how mandating 100% licensing could put the final nail in our coffin. I am stunned and sickened. DOJ did not take the impact on songwriters into account when issuing this ruling.”

Martin Bandier, Chairman and CEO of Sony/ATV Music Publishing:
“We are incredibly disappointed by the unjust way the Department has decided to interpret the consent decrees. Its decision is going to cause a tremendous amount of uncertainty and chaos in a market place that has worked well for years and will adversely impact everyone in the licensing process, including PROs, licensees, music publishers and most of all songwriters who can ill afford to hire lawyers to figure out their rights under this inexplicable ruling. The decision raises more questions than answers.”

Pictured (L-R): Charlie Pate, Dave Cobb, Aaron Raitiere, and Adam Hood. Photo: Warner/Chappell Music

Low Country Sound and Warner/Chappell Nashville have signed publishing agreements with songwriters Adam Hood, Charlie Pate and Aaron Raitiere.

Low Country Sound is the publishing venture jointly established by Warner/Chappell and Low Country Sound owner Dave Cobb in January. The songwriters will primarily work out of Nashville’s historic Studio A, which Cobb recently took up residence in.

“I’m very excited about Low Country Sound’s partnership with Warner/Chappell—we have a perfect alignment for honest songwriting,” said Cobb. “I think I’m lucky to have signed three of my favorite songwriters: Aaron Ratierre, Charlie Pate and Adam Hood. They appreciate country music and where it’s going, and they’re also a good bunch of folks to hang around with.”

Cobb added, “Charlie Pate is the epitome of good classic songwriting and he’s an encyclopedia of the history of country music, while Adam Hood is the embodiment of country and soul—he brings the Alabama feel to every lyric he writes—and Aaron Ratiere is a complete avant-garde artist in every sense; he paints songs.”

Hood has toured with the likes of Willie Nelson and Leon Russell, and has had his songs recorded by Little Big Town, David Nail, Josh Abbott Band, Lee Ann Womack and John Corbett, among others.

Pate is a former recording artist on Universal Records whose style has been compared to Hank Williams.

Raitiere, a collaborator of Miranda Lambert’s, is the recipient of numerous awards, including an Honorable Mention at the International Songwriting Competition for Roots/Americana Music for his song, “Leavin’ You for Me.”

Cobb has been recognized by the Americana Music Association as Producer of the Year (2014), and he received a Grammy nomination for Producer of the Year in recognition of his work on a number of albums, including Chris Stapleton’s Grammy, ACM, and CMA-winning Traveller and Jason Isbell’s Grammy-winning Something More Than Free. He has also produced albums for Sturgill Simpson, Jamey Johnson, Shooter Jennings, Waylon Jennings, Lake Street Dive, HoneyHoney, Houndmouth and Anderson East, among others.

Pictured (Back row, L-R): Big Machine Music’s Alex Heddle, BMI’s Leslie Roberts, Big Machine Music’s Tali Canterbury, Loeb & Loeb’s Brittany Schafer. (Front row): Big Machine Music’s Mike Molinar and Emily Landis

Big Machine Music, the publishing arm of Big Machine Label Group, has signed Emily Landis to an exclusive songwriting agreement. The Belmont University graduate studied songwriting while in college, and co-wrote four of the eight original songs she performed during Belmont University’s Showcase series for the country music genre.

Landis joins a roster that includes Jonathan Singleton (who has written songs recorded by Tim McGraw, Tyler Farr), Laura Veltz (Maren Morris, Cassadee Pope), Josh Thompson (Jason Aldean, Brad Paisley), and Fancy Hagood (Christina Aguilera, Ariana Grande).

“My team and I were immediately impressed with Emily’s dedication to the craft and her song sense. She will fit perfectly into our family of genuinely talented songwriters,” said Mike Molinar, General Manager of Big Machine Music.

“It is an absolute honor to call myself a part of the Big Machine Music family,” shared Landis. “Between Mike, Tali and Alex, I’ll be working with some of the most driven individuals in town. I’m so grateful for the chance they’re taking on me.”

Landis resides in Nashville.

John Prine

Wixen Music Publishing has signed an administration and song placement agreement with John Prine, going into effect Friday (July 1).

The agreement includes all songs that Prine controls, including fan favorites like “Lake Marie,” “Unwed Fathers” and “One Red Rose.”

“John Prine is one of America’s great national treasures, and a songwriter’s songwriter,” said company president Randall Wixen. “It is with the greatest honor and respect that we begin our relationship with Mr. Prine and his family. To say that we are excited about working with one of our industry icons would be an understatement. We are eager to begin the process of seeking new uses for his songs.”

With an office in Los Angeles and a sister company, Wixen Music UK Ltd. in London, the companies administer the song catalogs of artists including the Doors, Neil Young, Tom Petty, The Black Keys, Andrew Bird, and Fitz & The Tantrums.

Jon Singer

Spirit Music Group has promoted Jon Singer to Worldwide Chief Operating Officer/Chief Financial Officer, Spirit Music Group, as announced today by David Renzer, Chairman, Spirit Music Group.

Based in New York, Singer previously served as Spirit’s Worldwide CFO since joining the company in 2011. He will continue to oversee the company’s global finance operations, analyze and negotiate new deals, source and structure strategic partnerships and joint ventures and contribute to the company’s overall strategic planning and growth.

Singer was responsible for Spirit’s Nashville presence, acquiring Cal IV Entertainment in July 2015 to establish their first official presence on Music Row. In addition the company added the StyleSonic catalog, and in January of 2016 they acquired Frank Rogers’ interest in copyrights at Sea Gayle Music and Spirit formed a JV with Rogers to bring in new talent.

“As Spirit continues its aggressive growth, Jon has functioned as a true partner and played a key role in not only overseeing our day-to-day operations, but also in helping us identify and close important deals contributing to our rapid expansion,” said Renzer. “Jon’s extensive experience in finance (including his tenure at major labels Decca and Island Def Jam) along with the many strong relationships he’s built throughout his years in the industry are all helping to make a meaningful contribution to our team.”

“The way I have seen this company grow in recent years has been incredible, and I am fortunate to be surrounded at Spirit Music Group by such a talented and dedicated team,” said Singer. “It is truly a privilege to represent the many amazing song writers who have entrusted us with their valuable copyrights. I appreciate the support David and the Board have shown me throughout the years and I am eager to continue to build on the many strengths that make Spirit a premier global music publisher.”

Prior to joining Spirit, Jon spent 15 years on the recording side of the music business, most recently as CFO for the Decca Label Group (a division of Universal Music). While at Decca, Singer diversified the company from being the largest classical label in the world to an adult pop label having success with Sting, Elton John, Alison Krauss/Robert Plant and Celtic Thunder to name a few. His experience also includes Director of Finance for Island Def Jam Music Group, where he integrated Island, Def Jam and Mercury record labels creating the Island Def Jam Music Group during their acquisition by Universal.

Spirit Music Group, founded in 1995, is one of the world’s leading independent music publishers, owning and/or managing more than 75,000 songs spanning seven decades and every musical genre. Spirit is a portfolio company of Pegasus Capital Advisors, the New York-based private equity fund manager.