U.S. will review protocols for songwriters’ royalties

The Justice Department plans to review agreements that determine how songwriters are paid by radio stations, restaurants and streaming services, a move that could affect billions in royalties doled out each year.

Makan Delrahim, the top antitrust official at the Department of Justice, signaled in a speech Wednesday that he was examining the so-called consent decrees. And people familiar with the matter say the department has communicated its plans in discussions with music-industry executives. The Justice Department also has scheduled additional meetings in the coming weeks, according

to the people, who asked not to be identified because the talks are private.

The Justice Department declined to comment.

Consent decrees govern payments collected by go-between groups ASCAP and BMI that are later routed to songwriters or their publishers. While previous efforts to reform the system haven’t been successful, Delrahim’s stance has given songwriters new hope that the World War II-era agreements could finally be modernized.

“While the industry has grown around these two decrees, it should also recognize they are subject to periodic review,” Delrahim said this week during the speech, held at the annual meeting

of the National Music Publishers Association.

Delrahim has announced plans to review many of the more than 1,300 other consent decrees under his jurisdiction at the department but has yet to officially add ASCAP and BMI to the list.

Without consent decrees, songwriters could potentially negotiate higher rates with radio stations and other parties. But it also could throw the industry into chaos.

“The system isn’t perfect as is, but it would be much, much, much worse if the consent decrees were terminated,” said John Bodnovich, executive director at the American Beverage Licensees, an organization that represents bars and restaurants.