I am pleased to report that BMI’s revenues and royalty
distributions have both increased to historical highs,
despite an extremely challenging economy and a
turbulent environment in the music and copyright
industries. For the fiscal year ending June 30, 2011, BMI
reported revenues in excess of $931 million and royalty
distributions to our affiliates totaling more than $796
million. BMI’s ability to reliably achieve financial results
that run counter to industry trends is a product of the
sustained global popularity of BMI’s repertoire and the
company’s constant focus on diversification of revenue
streams.
BMI’s consistent drive toward revenue diversity is clearly
evident as one looks at the changes in BMI’s revenue
stream since the year 2000. While total revenue almost
doubled over that time, the percentage contributed from
cable and satellite, the new digital media and mobile
entertainment grew from 11 percent to 27 percent, and
our international revenue from 23 percent to 29 percent.
General Licensing revenues have remained stable over
the period. At the same time, traditional broadcast media
revenues have grown only marginally and their share of
the total has fallen from 54 percent to 32 percent.
A key factor in our ability to grow revenues is the
enduring value of the BMI blanket license to business.
Today, more than ever, the ability to license unlimited
use of BMI’s entire repertoire of more than 6.5 million
works in one simple transaction is recognized as the
most equitable and efficient licensing mechanism
available. This is as true for new media companies
such as YouTube and Spotify as it is for the steadily
proliferating cable services with their heavy dependence
on music.
Cable and satellite audio and video services continued
a multi-year trend of significant increases, recording
a 9.2 percent increase over the previous year. BMI’s
New Media Licensing also hit an all-time revenue high,
growing revenues almost 30 percent.
BMI international revenues hit an all-time high, with
Latin America, Western Europe and the Asia-Pacific
region all increasing their share of BMI’s global revenue.
The achievement of our licensing effort is of course
underpinned by the phenomenal appeal of the BMI
repertoire, both at home and around the world. Year
after year, our Writer/Publisher team has shown an
extraordinary ability to identify and develop the most
promising young talent across all genres of music. It
is this constant infusion of copyrights with explosive
popularity that creates value for BMI’s licensees. Lady
Gaga, Taylor Swift and British soul chanteuse Adele all
broke sales records and topped the charts in the U.S. and
around the world. They were joined by highly successful
new signings including Latin/urban sensation Pitbull,
urban breakout stars Nicki Minaj and Trey Songz,
tropical Latin sensation Prince Royce and new country
artists such as The Band Perry, Easton Corbin and Jason
Aldean.
Never in BMI’s history have our writers so completely
dominated the industry’s most prestigious awards, giving
the BMI repertoire a comprehensive sweep of the highest
honors across all genres. BMI writers won two-thirds of
this year’s Grammys, an achievement not equaled by
any other performing right organization in more than
a generation. Similarly, BMI writers won two-thirds or
more of the top industry awards in country, jazz, urban,
blues, bluegrass, and Latin. BMI writers dominated
Billboard’s year-end 2010 polls across the board.
BMI’s management has taken a number of initiatives
aimed at stabilizing and expanding the frame of
reference for BMI’s business as our industry transforms
itself for a global, digital future. The lines separating the
traditional roles of record companies, music publishers
and rights management organizations such as BMI are
becoming blurred as rights holders seek to optimize their
income in a rapidly shifting business environment.
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2007 2008 2009 2010 2011
Total Revenue
(millions)
BMI’s management team, with input and encouragement
from the BMI Board, is taking a hard look at both the
challenges and opportunities created by these rapid and
massive shifts in the music industry. We are laying the
groundwork for a multi-year transformation of BMI’s
business processes and technology infrastructure, and
are developing an improved capability to identify and
quickly deliver new services and new technologies.
These tools will enable us to serve the needs of our
songwriters, publishers and customers, as well as others
in the music and entertainment industry.
We have completed our first full year at BMI’s new
headquarters in 7 World Trade Center. Our employees
are enjoying the advantages of a state-of-the-art building,
situated in one of Manhattan’s most vibrant, re-emerging
neighborhoods. BMI’s successful move has been profiled
by The New York Times and Crain’s New York Business
as we help lead the development of a new and important
hub for media in downtown Manhattan.
I urge you to read the report that follows this overview.
It presents a detailed narrative of the company’s ability
to forge continued success in an extremely challenging
business environment, and it presents a story we all may
be proud of.
Grammy Awards
BMI
65%
Others
35%
BMI writers won two-thirds of this year’s Grammys, an
achievement not equaled by any other performing right or-
ganization in more than a generation.
International Revenue
(percent by category)
Western Europe
66.8%
Eastern
Europe
3.6%
Asia Pacific
14.7%
Africa
0.3%
Latin America
& Caribean
6.1%
Canada
8.5%
New Media Revenue
(percent by category)
Internet
74%
Music
Subscription
7%
Mobile
13%
RMLC
6%
Domestic Revenue
(percent by category)
Radio
30%
Broadcast
Television
17%
Cable & Satellite
34%
New Media
4%
General
Licensing
15%
Del Bryant
President & CEO
As the media menu continues to diversify, consumers
and creators have more opportunities to connect with
one another. From the growing popularity of cloud
music libraries and other forms of on-the-go access, to
new discovery platforms via viral videos and televised
talent competitions, BMI songwriters took advantage of
new routes into pop culture’s most visible mainstream
over the past year. Pop music remains dominant and di-
verse, as other formats including country, r&b, Latin and
hip-hop are shaping innumerable pop hits. Lady Gaga’s
reign is rooted in danceable pop, while artists including
Taylor Swift and Lady Antebellum continue to strengthen
country music’s pop appeal. Rihanna, Black Eyed Peas
and Eminem continue to blur the lines between urban
and pop sounds, while Pitbull and Shakira spike main-
stream hits with Latin panache.
As other sectors of the industry restructured, BMI’s role
as a career counselor continued to evolve and expand.
Evidence of BMI’s successful track record of nurturing
young talent is everywhere, from the career trajectories
of Lady Gaga and Taylor Swift and the rise of new voices
including Jason Derülo, Ester Dean, The Band Perry and
Skylar Grey, to the surge of first-time winners in every
genre at last year’s BMI Awards ceremonies.
As social media have played an increasingly important
role in communicating with the songwriting community,
BMI launched numerous social marketing campaigns
over the past year. In the last six months of fiscal 2011,
BMI’s Facebook page surpassed more than 17,300
“likes” or fans, increasing its audience by almost 64%,
while the company’s Twitter feed accumulated more
than 18,000 followers, a number that grew by more than
38%. Through these digital platforms, strategic com-
munications with large groups of actively engaged BMI
songwriters, composers and publishers — as well as po-
tential affiliates — has become more viable and efficient
than ever before.
Lady Gaga remained on top of the charts and at the heart
of industry buzz, clinching the 2010 Billboard Artist of the
Year crown. As “Bad Romance,” “Alejandro” and “Tele-
phone” lit up international airwaves, Gaga also soared
as a songwriter, winning the BMI Pop Songwriter of the
Year title, an honor she shared with Jason Derülo and J.R.
Rotem. Her sophomore studio release, Born This Way,
bowed at #1, while the title track topped charts in countless
countries and became the fastest-selling single in the history
of iTunes, selling one million copies in only five days.
Hits from such BMI stars as Lady Gaga, Taylor Swift, Lady Antebel-
lum, Rihanna, Black Eyed Peas, Eminem, Pitbull and Shakira help
blur the lines between pop and other genres.
Taylor Swift continued her record-breaking streak, win-
ning multiple BMI Awards spanning pop and country.
Swift sold more albums last year than any other artist in
any genre, and she remains the top-selling digital artist in
music history.
While Gaga, Swift and other familiar voices populated
charts, British soul chanteuse Adele emerged as the
year’s brightest breakout star. Her 2008 debut 19 has
since been certified quadruple-platinum in the U.K.,
while her sophomore release 21, which dropped in Janu-
ary of 2011, continued to break records and top charts in
her native country, the U.S. and around the world.
The Billboard Hot 100 continued to showcase the value
of the BMI repertoire, as cross-genre giants including
Black Eyed Peas, Jennifer Lopez, Eminem, Lady Antebel-
lum, Cee Lo Green, Carrie Underwood, Colbie Caillat
and others drove playlists. Britney Spears also made a
triumphant return to the top: She released her seventh
studio album, Femme Fatale, earlier this year, which
debuted at #1, making Spears the only female artist ever
to have six albums debut at the top of the charts. Smash
pop songwriters including RedOne, will.i.am, Sandy
Vee, Polow Da Don, J.R. Rotem, Kara DioGuardi, Jeffrey
Steele, Brian Howes, Claude Kelly, Amund Bjørklund,
Espen Lind, Kevin Rudolf, Jim Jonsin, Rodney Jerkins and
Marti Frederiksen were joined on the charts by new hit-
makers including Benny Blanco, Skylar Grey, Fraser T.
Smith, Bonnie McKee, Alex da Kid, and more.
On television, American Idol increased its sphere of in-
fluence: With the addition of new judges, including Jen-
nifer Lopez, the show became even more popular. More
than 29 million viewers tuned in for the season finale,
representing a resounding 21% increase in viewership
over the past year. The debut of series The Voice was
met with both critical and popular praise; the unique
talent contest relies on a judging/mentoring panel that
includes BMI’s Adam Levine, Christina Aguilera, Cee Lo
Green and Blake Shelton. BMI is also a proud supporter
of two new talent-development series: Bravo’s Platinum
Hit and Boardwalk Entertainment Group’s Majors &
Minors. Co-hosted by BMI’s Kara DioGuardi, Platinum
Hit takes an unprecedented look behind the scenes in its
search for undiscovered songwriters with major hit-mak-
ing potential. Set to premiere this fall, Majors & Minors
will pair auspicious young artists, ages 7 to 17, with
music’s biggest stars and industry leaders for mentoring
sessions.
Contemporary and classic rock both remained vital U.S.
genres. Fiery format leaders included Nickelback, Jack
White, Death Cab for Cutie, Foo Fighters, Maroon 5,
Daughtry, Linkin Park, Neon Trees, Kings of Leon, the
British soul chanteuse
Adele emerged as the year’s
brightest breakout star.
Jennifer Lopez, Cee Lo Green
and Colbie Caillat, among
others, scored big on the
Billboard Hot 100 and helped
drive playlists.
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2007 2008 2009 2010 2011
Net Distribution Income
(millions)
Decemberists, Lifehouse, Cage the Elephant, the Black
Keys and others. BMI’s deep roster of classic rock pio-
neers also enjoyed evergreen appeal. The popularity of
the Eagles, ZZ Top, John Fogerty, Pink Floyd, the Rolling
Stones, Eric Clapton, Queen and others only grows upon
their discovery by each new generation of listeners.
BMI’s urban songwriters, producers and artists continued
not only to dominate hip-hop and r&b charts, but the
Billboard Hot 100 as well. Nicki Minaj cut a bold figure,
becoming the first artist ever to have seven songs on
the Billboard Hot 100 chart at the same time. Longtime
favorites Rihanna, Lil Wayne, Eminem, Kanye West, Cee
Lo Green, Claude Kelly, Polow da Don, Chris Brown,
Snoop Dogg, Black Eyed Peas, Trey Songz, Rick Ross
and others were joined on the charts by strong new
voices including Ester Dean, B.o.B, Alex da Kid, Wiz
Khalifa, Lex Luger, Kane Beatz and more.
Further evidence of the public’s enduring partiality to the
BMI catalog also manifested in the undiminished pres-
ence of standards from Holland Dozier Holland, Little
Richard, James Brown, George Clinton, Al Green, Isaac
Hayes, and others, as well as blues pioneers B.B. King,
Buddy Guy, Howlin’ Wolf, Muddy Waters and more.
The Latin format continued to grow, reflecting the
country’s increasingly diverse population as well as the
genre’s mainstream appeal. Juanes and Shakira remained
effervescently popular and were joined at the top of
charts by Pitbull, whose collaborations have dominated
English- and Spanish-speaking markets alike. Luis Fonsi’s
Latin pop earned a sea of devoted fans, while Maná
proved the band only gets better with time: Member Ser-
gio Vallin co-produced the band’s top-selling album and
co-wrote their chart-topping single “Lluvia al Corazón.”
New artists including Francisca Valenzuela, Alex Cuba
and Ximena Sariñana mingled on the charts and in con-
certs with legends and established stars Gloria Estefan,
Carlos Santana, Café Tacvba, Gustavo Santaolalla, Juan
Luis Guerra, Lila Downs, Pepe Aguilar, Luz Rios, Julieta
Venegas, Cristian Castro, Ricky Martin and others.
Regional Mexican music also expanded its fanbase.
Jenni Rivera, Intocable, Conjunto Primavera, Los Tigres
del Norte, Larry Hernandez, La Arrolladora Banda El
Limón, Mariano Barba, Javier Serna, Erika Vidrio, Javier
Sanroman remained widely popular. Hit-maker Espinoza
Paz continued to help shape the genre, while Horacio
Palencia wrote smash after smash, winning his first BMI
Latin Songwriter of the Year crown.
Latin-urban fusions like reggaetón, as well as Latin
alternative, rock, tropical, norteño and jazz also thrived.
Chino y Nacho, Wisin & Yandel, Flex, Calle 13, Luny
Rock remained a vital U.S. genre, with Nickelback, Death Cab for
Cutie, Foo Fighters, and Kings of Leon among the format’s leaders.
Nicki Minaj, Lil Wayne, Kanye West and Polow da Don had a
huge impact on hip-hop, r&b and pop charts, underscoring the
strength of BMI’s urban roster of songwriters, producers and artists.
Tunes, Don Omar, Hector “El Father,” Zion and Ivy
Queen pushed reggaetón even farther into the main-
stream consciousness, while bachata — the new tropical
subset — generated massive amounts of airplay thanks
to Prince Royce, new stars Yunel Cruz, J’Martin and 24
Horas, as well as Shakira, whose new album, Sale El Sol,
embraced the genre.
Country music continued to flow from more radio tow-
ers than any other genre. Format listenership exploded
thanks to crossover artists including Taylor Swift and
Lady Antebellum. Swift’s “You Belong With Me” earned
2010 BMI Country Song of the Year honors, making her
the only songwriter ever to win BMI Country Song of
the Year three years in a row. The same year, Swift was
crowned BMI Country Songwriter of the Year. At 20
years old, she became the youngest songwriter ever to
win the honor. She is followed by Whisperin’ Bill Ander-
son and Johnny Cash, who won BMI Country Songwriter
of the Year at 23 in 1960 and 24 in 1956, respectively.
Kenny Chesney made headlines as he decided to return
to the BMI family of songwriters. Chesney’s homecom-
ing enriched BMI’s already glittering country vanguard:
Carrie Underwood, Keith Urban, Toby Keith, Tim
McGraw, Faith Hill, Martina McBride, Zac Brown Band,
Rascal Flatts, Ronnie Dunn, Vince Gill, Kix Brooks, Rod-
ney Atkins and more remained format leaders. Miranda
Lambert and Blake Shelton emerged as country music’s
newest power couple, topping charts and bringing new
listeners into the fold. Jason Aldean also became bona
fide star, selling out large venues and releasing a string
of no. 1 hits. Country’s most promising new voices
included The Band Perry, Easton Corbin, Eric Church,
Justin Moore, Thompson Square and Jerrod Niemann.
Perennial greats including Merle Haggard, Willie Nel-
son, Kris Kristofferson and George Jones remained on the
radars of critics and fans alike. Contemporary country
songwriters Bobby Pinson, Dallas Davidson, Rhett Akins,
Luke Laird, Jeffrey Steele and Casey Beathard also scored
hit after hit.
BMI continued to represent key gospel music leaders,
from the Clark Sisters, Donald Lawrence and Marvin
Winans, to Israel Houghton, Yolanda Adams, Pastor
Marvin Sapp and Kirk Franklin. The Christian format was
strengthened by BMI heavyweights including Casting
Crowns, Steven Curtis Chapman, Sidewalk Prophets,
Jars of Clay, DecembeRadio and producer/songwriter
Ed Cash, as well as the addition of Christian star Chris
Tomlin. Young artists like Leeland, Sanctus Real, Flyleaf,
Needtobreathe and Skillet also pushed genre boundaries
and enhanced BMI’s catalog.
BMI Latin Songwriter of the Year Horacio Palencia and fellow BMI
songwriter/artists Jenni Rivera, Intocable and La Arrolladora Banda
El Limón helped boost the popularity of Regional Mexican music.
BMI Lehman Engel Musical Theatre Workshop alumnus Robert
Lopez and veteran composer Larry Hochman swept the music
categories at the 65th Annual Tony Awards thanks to their work on
runaway hit The Book of Mormon.
The musical theatre world continued to reflect BMI’s
traditional leadership within that genre. BMI Lehman
Engel Musical Theatre Workshop alumnus Robert Lopez
and veteran BMI composer Larry Hochman took home
statuettes in every music category at the 65th Annual
Tony Awards thanks to their work on runaway hit The
Book of Mormon. BMI composers also swept the Drama
Desk Awards: Lopez took home two trophies, Out-
standing Music and Outstanding Lyrics for The Book of
Mormon, which was also named Outstanding Musical
overall. Hochman clinched the Outstanding Orchestra-
tions prize. Adam Mathias enjoyed a big night as well,
winning Outstanding Book of a Musical for See Rock
City and other Destinations, while Wayne Barker walked
away with Outstanding Music in a Play honors for Peter
and the Starcatcher.
All of the honorees are a testament to the strength of
BMI’s musical theatre creators, but two winners in par-
ticular directly underscore BMI’s tradition of cultivating
the art form’s next generation: Lopez presented songs for
The Book of Mormon in the Tony Award-winning BMI
Lehman Engel Musical Theatre Workshop, while Mathias
actually developed See Rock City and Other Destina-
tions in the Workshop.
Broadway as a whole remained filled with top-drawing
and Lehman Engel Workshop-developed BMI produc-
tions, including Next to Normal, Passing Strange, Spring
Awakening, Beauty and the Beast, Tarzan, A Chorus
Line, Avenue Q, Chicago, Jersey Boys, Mamma Mia!,
Mary Poppins, Spamalot, The Color Purple and The Lion
King.
BMI’s classical repertoire remained unmatched as well.
Seven out of the 10 “Most Frequently Performed Living
American Composers” are members of the BMI family.
Almost 60% of the composer roster of the American
Academy of Arts and Letters, limited to the 50 most
prominent American composers, are BMI members.
BMI’s jazz roster and repertoire fostered a long-held
tradition of excellence. BMI composers Hubert Laws and
Dave Liebman were included in the 2011 Class of NEA
Jazz Masters, while BMI greats dominated the Jazz Jour-
nalists Association Awards. Jimmy Heath received the or-
ganization’s Lifetime Achievement in Jazz, Sonny Rollins
was named Musician of the Year and Joe Lovano’s “Bird
Songs Us Five” garnered Recording of the Year honors.
BMI jazz greats Mose Allison, Herbie Hancock, Ron
Carter, Stanley Clarke, Kurt Elling and many more also
continued to garner acclaim.
The country’s most sought-after film and television music
composers continued to be stars on BMI’s roster. Com-
pelling film and television composer Brian Tyler rejoined
the BMI family last year. Some of Tyler’s recent credits
include films Fast Five, Battle Los Angeles, The Expend
Kenny Chesney, Carrie
Underwood and Keith Urban,
among others, continued
BMI’s dominance in country
music, while Miranda Lambert
and Blake Shelton emerged
as the genre’s newest power
couple.
David Arnold received the
Richard Kirk Award, BMI’s
highest accolade for film
and TV composers. Arnold
has created scores for the
James Bond franch.
ables and Fast & Furious, as well as TV shows Hawaii
Five-O and Transformers Prime. Rising star iZLER, the
composer behind music for episodes of Shameless and
Revenge as well as award-winning films Natural Selec-
tion and On the Ice also joined BMI this year.
The prolific David Arnold received the Richard Kirk
Award, BMI’s highest accolade for film and TV com-
posers. Arnold has created scores for the James Bond
franchise’s Tomorrow Never Dies, The World Is Not
Enough, Casino Royale and Quantum of Solace, along
with many other top-grossing films such as Indepen-
dence Day, Stargate and Chronicles of Narnia: Voyage
of the Dawn Treader. Composer Atticus Ross walked
away with the Oscar and Golden Globe this year for
his score for the critically acclaimed film The Social
Network.
BMI has music in 91% of the top 100 films for the year,
and BMI’s top 50 films grossed over $2.5 billion in
domestic box office. BMI composer Harry Gregson-Wil-
liams scored four top-grossing films this year including
Shrek Forever After, The Town, Prince of Persia: The
Sands of Time and Unstoppable. Alexandre Desplat
scored the highest-grossing film of the year, Harry
Potter and the Deathly Hallows: Part 1, as well as the
Oscar-winner for best picture, The King’s Speech. After
composing the music for Transformers (2007) and Trans-
formers: Revenge of the Fallen (2009), Steve Jablonsky
returned to score Transformers: Dark of the Moon. Other
top-earning and critically acclaimed jewels included
Black Swan, with music by Clint Mansell; Tangled, with
songs and score by Alan Menken; and Tron: Legacy,
with music by Daft Punk.
The biggest success stories in television also relied on
scores and themes by BMI composers. In 2010, BMI
boasted theme or background music in 78% of all prime-
time network programs. Blake Neely’s work for The
Mentalist, Brian Kirk’s music for NCIS, Daniel Licht’s
score for breakout series Body of Proof, David Buckley’s
score for the Peabody Award-winning The Good Wife,
Rob Simonsen’s and Mark Morgan’s music for Blue
Bloods, Steve Jablonsky’s score and Danny Elfman’s
theme for perennial favorite Desperate Housewives, Jace
Everett’s theme and Nathan Barr’s underscore for HBO’s
wildly popular True Blood and Rolfe Kent’s theme and
Daniel Licht’s score for Dexter, all contribute to the
programs’ lofty ratings. Additionally, Dave Pierce won a
prime time Emmy for Vancouver 2010 Olympic Winter
Games Opening Ceremony, and BMI composer Alex
Wurman won for the much acclaimed Temple Grandin.
Vladimer Podgoretsky was named the BMI/Jerry Gold-
smith Film Scoring Scholarship recipient at UCLA Exten-
sion, while Berklee College of Music awarded Pablo
Gomez Trujillo its BMI Film Scoring Scholarship, which
was presented by legendary BMI composer Alan Silvestri
during BMI Day at the school.
BMI’s catalog continued to charm listeners in countries
all over the world, while numerous foreign-based song-
writers and artists also enjoyed success in the coveted
U.S. market. Lady Gaga led the BMI charge overseas,
landing the top three most-performed songs in interna-
tional markets: “Poker Face,” “Bad Romance” and “Just
Dance.” Black Eyed Peas and Michael Jackson rounded
out the top five, illustrating the combination of cutting-
edge contemporary and timeless classic that makes
BMI’s roster and repertoire so valuable. Taylor Swift, Pit-
bull, Ke$ha, Jason Derülo, Kings of Leon and Pink also
contributed some of the world’s most popular hits, as did
Aloe Blacc, Rihanna, Cee Lo Green and Jennifer Lopez.
BMI composers also helped fuel the success of another
in-demand U.S. commodity: television series. Navy
NCIS, Numb3rs, The Smurfs and The Mentalist each gar-
nered legions of viewers around the world and featured
original music by BMI composers. Movies remained
America’s other beloved entertainment export. Sex
and the City, featuring music by BMI composer Aaron
Zigman, and Alice In Wonderland, with a score by BMI
composer Danny Elfman, continued to draw audiences,
while new films such as Tangled, with music by Alan
Menken; Fast Five, featuring a score by Brian Tyler; The
Chronicles of Narnia: The Voyage of the Dawn Treader,
which relies on music by recently crowned BMI Icon
David Arnold; and Black Swan, featuring an innova-
tive score by Clint Mansell, all filled theaters across the
globe.
From ubiquitous pop stars to brilliant composers, BMI’s
steadfast vanguard of creators enriched and expanded
BMI’s international reputation as the home of the world’s
most dynamic creators and timeless songs.
BMI’s global leadership role in rights administration is
centered on the company’s ability to leverage technology
and deploy efficiencies that strengthen its commitment
and level of service to both affiliates and licensees. During
fiscal 2011 BMI embarked on an accelerated program to
update the company’s overall technology infrastructure
and evaluate business processes to better prepare for the
expansion in digital and mobile technologies.
In January 2011, the company launched BMI Live, a
program enabling performing songwriters to register their
concerts and set lists online to be considered for payment
in live music venues, regardless of size. BMI Live allows
songwriters to input their tour information for concerts and
receive royalty payments in the quarterly distributions. A
mobile version of the program was made available in April,
enabling participants to upload concert-venue and set-list
data directly from their smartphones into BMI’s systems.
BMI Live allows the company to pay more songwriters than
ever while offering the potential for increasing the number
of licensed venues.
Response to the program has been extremely positive, as
thousands of songwriters have signed up since its launch,
uploading set lists to qualify for royalty payments. The first
payments for the program were made in the June 2011
distribution, with many of the participants receiving their
first-ever performing-right royalties.
During fiscal 2011, BMI affiliated over 48,000 new
writer and publisher accounts. More than 44,000 new
writers signed up during that period with 96% of the
writer applications received and processed through the
paperless online affiliation tools.
The rate of new publisher affiliations was up 1.5% from
fiscal 2010, with more than 3,500 new accounts in place,
while the number of administration agreements processed
increased 17% to 1,138. In addition, 38,655 address
changes were completed last year, with 61% processed
through the online change-of-address application.
During the past year, the company began programming
to re-engineer the systems associated with works registration
and maintenance. The fundamental aim of this project
is to re-engineer all business processes related to
the receipt and registration of works and convert the
computer systems to updated, leading-edge technology,
thereby maximizing functionality and automation, and
enhancing research tools so that increasing volumes of
incoming registrations and revisions can be managed in
an accurate, timely and cost-effective manner.
A program was developed to locate and process pending
electronic work registrations so that performances of
those works are not missed due to what otherwise would
be late registrations. This process has helped to reduce
the number of royalty adjustments needed due to late
registration.
In fiscal 2011, a total of 608,065 new works were
registered, 97% of which were submitted electronically.
This represents a 33% increase in works registered over
the previous year.
The CISAC Board of Directors recently approved the
development and delivery of customized publisher
access to the CIS-Net Musical Works Information (MWI)
system. The CISAC Society Liaisons Group, which is
currently chaired by BMI, is in consultation with publishers
on defining their business requirements for this system.
BMI continues to lead the FastTrack AV Index (a global
list of audiovisual works) Integration project, which will
automate all existing manual tasks of AVI administration.
It will also afford cost savings for the company’s TV
Operations department in resolving AVI submission
conflicts as well as reducing BMI’s contribution to AV
Index maintenance costs by an estimated 25% annually.
Litigation is one of the ways by which BMI’s Legal
department protects copyright and, in particular, the
company’s repertoire. Copyright infringement litigation
is commenced against business establishments that
refuse to enter into a BMI License Agreement when that
business publicly performs music in the BMI repertoire.
The Legal department continued to commence copyright
infringement suits during the fiscal year ending June 30,
2011, and, in fact, the number of such suits increased
over the prior fiscal year.
Additionally, a major avenue used by the Legal
department to protect the value of the BMI repertoire is
through litigation in the BMI Rate Court, which exists
to set reasonable license fees and terms in the event
BMI and its licensees cannot agree on the terms of new
license agreements. While, in most situations, BMI has
been able to negotiate reasonable license terms, there
are instances in which BMI and users of BMI-licensed
music have utilized the rate court route when impasses
in negotiations have occurred.
During fiscal 2011, two major rate-court proceedings
continued to wend their way through the BMI Rate
Court. In 2009, the Television Music License Committee
filed a petition to set reasonable final license fee rates
and terms on behalf of those local television stations
that it represents for the period beginning January 1,
2005. The TMLC requested an adjustable form blanket
license in addition to a per-program license agreement.
BMI submitted its response to the TMLC’s filing and
pre-trial discovery is underway. At issue is whether BMI
must offer an adjustable form blanket license to local
television stations. The issue was submitted to Judge
Louis Stanton, BMI’s Rate Court Judge, who ruled that
BMI did have to offer such a license. BMI has appealed
Judge Stanton’s decision for review by the Court of
Appeals for the Second Circuit and it is anticipated that
this will be heard in the fall of 2011. With respect to the
trial of the rate case itself, it is anticipated that a trial in
this matter will start spring 2012. A decision of the Court
will be retroactive to January 1, 2005.
On January 12, 2010, the Radio Music License
Committee (RMLC) filed a request for the BMI Rate Court
to set reasonable final license fees and terms for those
radio stations it represents for the period commencing
January 1, 2010. BMI agreed to interim industry license
fees to be paid to BMI in the sum of $192+ million
for those stations represented by the RMLC. When
rendered, the Rate Court’s decision with respect to final
license fees and terms will be retroactive to January 1,
2010. In addition to those stations represented by the
RMLC, a large number of stations agreed to be bound
by either a final rate determination made by the Court
or any settlement between the RMLC and BMI. Pre-trial
discovery has commenced and will continue through
2011. The trial in this matter is not expected to start
before winter 2012
During fiscal year 2011, proceedings pending before
the BMI Rate Court included the commercial music
service DMX, which concerned the establishment of an
adjustable blanket license fee. After a full trial, Judge
Stanton issued his decision on July 26, 2010. While
the decision contained some favorable rulings for BMI,
overall, it was not favorable. Since BMI believes that
Judge Stanton’s decision was flawed, BMI appealed to
the federal Court of Appeals for the Second Circuit. On
June 16, 2011, the appeal was heard before a panel of
three judges. We await the Court’s decision.
In a rate proceeding involving ASCAP, Judge Conner, the
ASCAP Rate Court Judge at the time, ruled that downloads
of music did not implicate the public performing right.
ASCAP appealed that decision to the federal Court of
Appeals for the Second Circuit. After argument, the Court
of Appeals sided with Judge Conner. The Second Circuit’s
decision inserts a new requirement of “contemporaneous”
or “simultaneous” perception into the Copyright Act’s
definition of a public performance. This new requirement
imposed by the Court, which appears nowhere in the Act or
in earlier case law, adversely affects BMI. ASCAP is seeking
a writ of certiorari to the U.S. Supreme Court so that this
issue can be heard by the nation’s highest court. BMI has
submitted an amicus brief urging the Supreme Court to hear
this case.
BMI was active on a variety of public policy issues
affecting copyright law during the past fiscal year,
continuing its efforts to prevent any erosion of the
public performing right and ensure that our songwriters,
composers and music publishers are fairly compensated
for their creative efforts. A number of bills introduced
in the past year have the potential to impact BMI and its
affiliates.
The Protect IP Act, which aims to reduce piracy of
copyrighted works in the online environment, is a
primary focus of this year’s copyright agenda. Senator
Patrick Leahy (D-VT) introduced the Act to authorize
the Attorney General or an intellectual property rights
holder harmed by an Internet site dedicated to infringing
activities to commence an action against that site or its
owner. In May of 2011, the Senate Judiciary reported
favorably on S. 968, with an amendment containing a
provision that would allow organizations like BMI that
represent the rights of copyright owners to bring actions.
Resolutions supporting the Local Radio Freedom Act,
which proposes that Congress should not impose any
new performance fees or taxes on local radio stations,
have been introduced in both the House and the Senate
again in the 112th Congress. While the House version
has been referred to the Judiciary Committee, they
currently have no plans to move the resolution. The
Senate version, sponsored by Senator John Barrasso
(R-WY), has been referred to the Senate Commerce
Committee.
Streaming bill S. 978, which creates criminal penalties
for the infringement of copyright’s exclusive rights
(including the public performance right), was reported
out of the Senate Judiciary Committee on June 20.
Senators agreed to enter a colloquy into the record
agreeing to work on the legislation prior to floor
consideration to alleviate the concerns of the cable
industry. The House is expected to address the issue as
well, and it’s possible they could attach it to their version
of the Protect IP Act.
A number of bills have been introduced that address
the FCC’s Net Neutrality regulations. One is an attempt
to address the issue of whether the FCC should possess
such oversight via the appropriations process (i.e.
prohibiting the FCC from using appropriated funds to
carry out the order). Another bill’s approach attempts
to overturn the FCC’s oversight through Congressional
Review (under the Congressional Review Act). A
resolution of disapproval and removal of the force and
effect of the FCC’s Open Internet Order (Net Neutrality
Regs) passed the House on April 8. An identical version
has been introduced in the Senate but has not gotten
traction in that body. Regardless of Senate inaction, the
issue of Internet access will be of continued interest to
members of Congress.
IncreasIng VIsIbIlIty & awareness
BMI’s Government Relations department has continued
to build and strengthen a relationship with Victoria
Espinel, the United States Intellectual Property
Enforcement Coordinator. In doing so, BMI was
instrumental in securing Ms. Espinel to attend the CISAC
World Copyright Summit in Brussels, Belgium in June
2011. Ms. Espinel was a featured keynote speaker and
presented the U.S. goals in combating piracy to the
conference.
The department continues to create new relationships
in the DC area with the Department of Education,
ThanksUSA, and the Chamber of Commerce. In
November 2010, BMI successfully produced a “Register
Now!’ event at the Library of Congress, showcasing
D.C.-area songwriters in tandem with a demonstration of
how songwriters can register their works online with the
Copyright Office.
As a Founding Member of the Copyright Alliance,
BMI continues to develop strong ties to the copyright
community and maintain a strong presence in the D.C.
area. BMI’s D.C.-area songwriter Gordon Daniels and
his band, Lucky Dub, performed at this year’s Copyright
Alliance reception to welcome new members of
Congress and their staffs.
In keeping with its efforts to develop and maintain
strong relationships with key legislators and government
officials, the Government Relations department hosted
a Town Hall for Congresswoman Marsha Blackburn
and FCC Commissioner McDowell at BMI Nashville
and a fundraiser for Congressman John Conyers in May
at the BMI New York office. Both legislators are strong
defenders of copyright and friends of BMI.
grassroots efforts
As part of its ongoing efforts to educate legislators
about BMI’s mission and the important role it plays in
protecting creators’ rights, the Government Relations
department distributed a revised and updated edition of its
Congressional brochure to freshman members of Congress.
BMI continued to take on a leadership role in the
DC area, sponsoring the Washington Area Music
Association’s WAMMIE awards and launching the
BMI hosted a fundraiser for Congressman John Conyers at
its New York headquarters, where music industry leaders
got better acquainted with the Congressman, who is a
strong proponent of creators’ rights. Pictured are BMI
President & CEO Del Bryant, Congressman Conyers, and
BMI Senior Vice President Fred Cannon.
BMI Songwriters Showcase at the Hard Rock Café in
Washington, D.C.
BMI continues to be active in various positions at CISAC
(International Confederation of Societies of Authors and
Composers). BMI submitted a National Report for the
United States, the purpose of which is to advise CISAC
and the members of the CISAC Legal Committee of
major U.S. copyright cases and pending U.S. legislation
that impacts copyright.
During fiscal 2011, the European Commission (EC)
continued to place pressure on European societies
to compete with one another in the area of licensing
online, cable and satellite transmissions in the European
Economic Area. While BMI had taken the lead and
attempted to suggest a way forward for the European
societies, they are attempting to resolve their own
problems in their own way. The Legal department
reviewed various proposed solutions from both U.S.
and European legal perspectives. BMI, as a leader in
technology, has continued to lead the way to a possible
solution that is acceptable to the EC, creators, as well as
the European societies. We are constantly monitoring
the situation in Europe so that the interests of BMI’s
songwriters, composers, and music publishers will be
protected.
