ASCAP & BMI Win Higher Radio Royalties, Court Limits Anti-Piracy Tools, and IFPI Eyes India’s Growth
How The Music Business Works - Issue #25
August 21, 2025
Welcome back to How The Music Business Works!
This week’s newsletter dives into big moves shaping music’s future.
U.S. PROs secure higher radio royalties with new ASCAP and BMI settlements, courts curb rights holders’ anti-piracy tools, IFPI spotlights India’s global growth potential, and Suno pushes back in a key AI copyright case.
On to the details.
BMI Secures ‘Largest Rate Increase Ever’ for Radio Royalties in US
BMI has struck a landmark settlement with the Radio Music License Committee (RMLC), securing what it calls its “largest rate increase ever” for U.S. radio royalties. The deal, covering 2022–2029, raises broadcaster payments from the previous 1.78% of gross revenue to between 2.14% and 2.20%, applied retroactively from January 2022. The agreement follows years of legal disputes and reflects BMI’s stronger market share, now under private equity ownership. Industry observers note the deal was influenced by competition from Irving Azoff’s Global Music Rights, which helped bolster BMI’s case for higher rates. Both sides hailed the outcome as a fair resolution that avoids costly litigation.
ASCAP Secures ‘Higher Rates’ in Settlement With US Radio Broadcasters
ASCAP has reached a new settlement with the Radio Music License Committee (RMLC) that will boost royalty rates for nearly 10,000 U.S. commercial radio stations. The deal secures higher, year-over-year payments for the public performance of ASCAP’s 20 million works across AM/FM stations, though exact rate details weren’t disclosed. Announced the same day as BMI’s record rate hike with the RMLC, the agreement strengthens ASCAP’s royalty stream and ensures continued licensing of its catalog for radio. ASCAP, which reported $1.835 billion in 2024 revenue, says the deal reflects modern radio practices and guarantees greater financial security for its songwriters, composers, and publishers.
Appeals Court Blocks Expedited Subpoenas to Identify Pirates
The 9th Circuit Court of Appeals has ruled that record labels and film studios cannot use the DMCA’s expedited subpoena process to force internet providers to reveal the identities of users accused of piracy. The decision, a setback for the RIAA and Motion Picture Association, blocks rights holders from bypassing lawsuits to obtain user data—a method critics say is prone to abuse. Instead, copyright owners must continue filing John Doe lawsuits, a slower and more costly approach. The ruling aligns with earlier decisions from the D.C. and 8th Circuits, leaving calls for tougher anti-piracy measures in the hands of Congress rather than the courts.
IFPI CEO Victoria Oakley Hails ‘Extraordinary Potential’ of India’s Music Industry
At the All About Music conference in Mumbai, IFPI CEO Victoria Oakley said India has “extraordinary potential” to fuel the next wave of global music growth but must address major hurdles. She pointed to the low number of paid streaming subscribers, risks from AI misuse, and streaming fraud as key challenges. Oakley outlined three priorities: expanding paid streaming, strengthening collaboration across the industry, and championing regional diversity. She also announced the launch of official music charts in India, including local-language rankings. Oakley urged industry leaders to build a fair, sustainable future that values creativity and protects human expression.
Suno Says Indie Musician’s Copyright Claims About Its AI’s Output Are Bogus
Suno has filed its first major response to the copyright lawsuit brought by independent artist Anthony Justice, asking the court to dismiss claims that its AI outputs infringe copyrights. Justice argues Suno violates rights both by copying music for training (input) and by generating derivative tracks (output). Suno says the output claims misrepresent how its system works, stressing it doesn’t sample or stitch recordings but instead learns patterns to create new music. It notes courts have consistently dismissed similar output claims in other AI cases, leaving input and fair use as the real battleground. Justice’s lawsuit, which seeks class action status for indie artists, remains significant given majors may eventually license their catalogs to AI while independents risk exclusion.