SESAC, one of three performing rights organizations in the United States that licenses music to radio and collects royalties on behalf of writers and publishers, is facing allegations of anti-trust violations over its recent rate increase. Read Billboard’s story on the most recent ruling here.
SESAC, the youngest of the three organizations, which include BMI and ASCAP, operates somewhat differently than the other two with regard to increases in it’s licensing fees. BMI and ASCAP both have court approved rules, called consent decrees, governing their rate increase process and including a method for the radio stations to challenge rates set by the organizations. SESAC has no procedure for stations to challenge rate increases, which is one factor that led to the anti-trust lawsuit.