LOCAL STATION ALTERNATIVE BLANKET TELEVISION LICENSE
AGREEMENT made between AMERICAN SOCIETY OF COMPOSERS,
AUTHORS AND PUBLISHERS (“SOCIETY”) and ____________________________
(“LICENSEE”) as follows:
1. Term and Scope of License
A. SOCIETY grants to LICENSEE and LICENSEE accepts for a period
commencing as of __________________ (the “Effective Date”) and ending December 31, 2016
(the “Term”), a Through-to-the-Audience License to perform publicly all musical works
heretofore copyrighted, composed or written by the members of SOCIETY and now or hereafter
during the term hereof in the repertory of SOCIETY, or hereafter during the term hereof
copyrighted, composed or written by such members of SOCIETY, or of which SOCIETY shall
have the right to license such performing rights:
(1) by Television Broadcasting in the United States, and its territories,
commonwealth and possessions, as part of LICENSEE’s Non-Network Television Programs and
Non-Network Announcements from television station ___________________ (“STATION”),
Main Channel ________ (“Main Channel”), located at _________________________, ____,
with FCC Facility ID _____; and including any associated digital multicast channel(s).
(2) by streaming on STATION Web Sites.
(3) by transmitting or causing to be transmitted, directly or indirectly,
STATION-supplied programming via mobile, wireless, and any other digital platforms,
regardless of the device through which viewers access the performances.
B. In the event that STATION airs Locally-Produced Television Programs,
and such Programs also appear on one or more additional stations (which Programs for purposes
of this Agreement would not be considered Locally-Produced Television Programs for the
additional station(s)), only the STATION may retransmit music in SOCIETY’s repertory
contained in such Programs in the manner described in Subparagraphs 1.A.(2) above, while the
additional station(s) may not.
C. The license granted herein does not cover transmissions on a STATION
Web Site of music in SOCIETY’s repertory where members of the public are charged a fee by
STATION for the right to access such transmissions. Such transmissions shall be subject to
appropriate separate licensing. Notwithstanding the foregoing, the fact that STATION may
charge members of the public for access to discrete areas of a STATION Web Site other than
those areas containing performances licensed hereunder shall not limit the scope of coverage of
this license.
D. (1) This license does not extend to or include the public performance by
Television Broadcasting or otherwise of any rendition or performance of (a) any opera, operetta,
musical comedy, play or like production, as such, in whole or in part, or (b) any composition
from any opera, operetta, musical comedy, play or like production (whether or not such opera,
operetta, musical comedy, play or like production was presented on the stage or in motion
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picture form) in a manner which recreates the performance of such composition with
substantially such distinctive scenery or costume as was used in the presentation of such opera,
operetta, musical comedy, play or like production (whether or not such opera, operetta, musical
comedy, play or like production was presented on the stage or in motion picture form); provided,
however, that the rights granted to LICENSEE under this Agreement shall be deemed to include
a grant of the right to make non-dramatic performances of compositions licensed hereunder by
Television Broadcasting or otherwise of a motion picture containing such compositions if the
rights in such motion picture other than those licensed under this Agreement have been obtained
from the parties in interest.
(2) Nothing herein contained shall be deemed to license the public
performance by Television Broadcasting or otherwise of dramatic performances. Any
performance of a separate musical composition that is not a dramatic performance, as defined
herein, shall be deemed to be a non-dramatic performance. For purposes of this Agreement, a
dramatic performance shall mean a performance of a musical composition as part of a television
Program in which there is a definite plot depicted by action and where the performance of the
musical composition is woven into and carries forward the plot and its accompanying action. The
use of dialogue to establish a mere Program format or the use of any non-dramatic device merely
to introduce a performance of a composition shall not be deemed to make such performance
dramatic. For purposes of this Agreement, performances of compositions in music videos shall
be construed as non-dramatic performances.
E. The performances licensed hereunder may originate at STATION or at
any other place whether or not such other place is licensed to perform publicly the compositions
licensed hereunder, regardless of the manner, means, or method of such origination; but nothing
herein contained shall be deemed to grant a license to such place itself (or to the parties
responsible for the performance therein) for the public performance in such place of any such
compositions.
F. Except as expressly herein otherwise provided, nothing herein contained
shall be construed as authorizing LICENSEE to grant to others any right to reproduce or perform
publicly by any means, method or process whatsoever, any of the musical compositions licensed
hereunder or as authorizing any receiver of any television broadcast to perform publicly or
reproduce the same, by any means, method or process whatsoever.
G. This Agreement expressly incorporates, and SOCIETY and LICENSEE
agree to be bound by, the provisions of the letter agreement, dated July 27, 2012, between
SOCIETY and TELEVISION MUSIC LICENSE COMMITTEE (“COMMITTEE”), a copy of
which is attached hereto as Exhibit A.
2. Definitions
For purposes of this Agreement only:
A. “Affiliated Station” means any Television Broadcasting station in the
United States and its territories that regularly broadcasts Programs transmitted by a television
network licensed by SOCIETY during the term hereof.
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B. “Announcement” means any commercial, promotional, or public service
announcement (exclusive of program-length “infomercials” of greater duration than 120
seconds), or any producer’s or distributor’s logo.
C. “ASCAP Consent Decree” means the Second Amended Final Judgment,
or any successor decree, in United States v. ASCAP, S.D.N.Y. 41-1395 (WCC).
D. “Blanket License Fee” means the blanket license fee for the STATION
for an applicable License Year as determined by COMMITTEE and calculated pursuant to the
methodology set forth in Exhibit B hereto.
E. “COMMITTEE” means the Television Music License Committee, LLC,
a limited liability corporation organized under the laws of the State of New York, which is duly
authorized to represent local television stations in music licensing matters.
F. “Data Period” means, for any applicable License Year, the twelve-month
period commencing on July 1 and expiring on June 30 immediately preceding such License
Year.
G. “Data Provider” means Gracenote, Inc., the media monitoring subsidiary
of Tribune Media Company, and any successor in interest to all or a controlling share of its
equity or assets, or such other similar program reporting service as ASCAP and the TMLC may
hereafter agree to use in place of Gracenote, Inc.
H. “Data Reports” means the reports of Programs broadcast on STATION’s
Main Channel that are supplied by the Data Provider. “Data Reports” shall include information
necessary to enable the calculation of the LNSPA Fraction (as defined below).
I. “License Year” means each calendar year period during the Term. For
purposes of this Agreement, the period commencing on the Effective Date and continuing
through and including the following December 31 shall be deemed a License Year.
J. “LMA OPERATOR” means any person, firm or corporation not under
the same or substantially the same ownership, management or control as LICENSEE with whom
LICENSEE has entered into a Local Marketing Agreement.
K. “LNSPA Fraction” for any applicable License Year means a fraction, the
numerator of which shall be fifty percent (50%) of the total minutes of LNSPA Programs that are
broadcast on LICENSEE’s Main Channel during the Data Period for such License Year and the
denominator of which shall be the total minutes of Non-Network Television Programs broadcast
on LICENSEE’s Main Channel during such Data Period. For the avoidance of doubt, the LNSPA
Fraction shall be determined by SOCIETY based on Data Reports.
L. “LNSPA Program” means any Locally-Produced Television Program
that is a News Program, Public Affairs Program or Sports Program (all as defined below).
M. “Local Marketing Agreement” means any arrangement between
LICENSEE and an LMA OPERATOR that:
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(1) authorizes the resale by an LMA OPERATOR of the use of the
Television Broadcasting facilities of STATION;
(2) permits an LMA OPERATOR to provide Programs for all or
substantially all of the time STATION is on the air;
(3) provides for the sale by an LMA OPERATOR of all or
substantially all Announcements broadcast on STATION; and
(4) provides that LMA OPERATOR will assume responsibility for the
payment of license fees.
N. “Locally-Produced Television Program” means any Non-Network
Television Program produced by, or expressly for, LICENSEE.
O. “Monthly Blanket License Fee” means LICENSEE’s blanket license fee
for the STATION for any calendar month during an applicable License Year, calculated as (1)
one-twelfth (1/12) of the Blanket License Fee for such License Year or (2) $45.00, whichever is
greater.
P. “Network Announcement” means any Announcement transmitted by a
television network licensed by SOCIETY at the time such Announcement is broadcast on the
network, and broadcast simultaneously or by so-called “delayed” or “repeat” broadcasts
(sometimes known as “rebroadcasts”) over two or more Affiliated Stations of that network.
Q. “Network Television Program” means any Program, transmitted by a
television network licensed by SOCIETY under a separate television network license at the time
such Program is broadcast on the network, identified as a Program of the network, and broadcast
simultaneously or by so-called “delayed” or “repeat” broadcasts (sometimes known as
“rebroadcasts”) over two or more Affiliated Stations of that network.
R. “News Program” means any Non-Network Television Program that is
categorized as a “news program” on Data Reports, or which otherwise consists solely of content
similar to programming categorized as news programming by a Data Provider. For purposes of
this Agreement, “News Program” shall not include any Program that primarily consists of, or
focuses on, music.
S. “Non-Network Announcement” means any Announcement broadcast by
STATION other than a Network Announcement.
T. “Non-Network Television Program” means any Program broadcast by
STATION other than a Network Television Program.
U. “Program” means all material (visual or otherwise) broadcast by
STATION other than Announcements.
V. “Public Affairs Program” means any Non-Network Television Program
that is categorized as a “public affairs program” on Data Reports, or which otherwise consists
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solely of content similar to programming categorized as public affairs programming by a Data
Provider. For purposes of this Agreement, “Public Affairs Program” shall not include any
Program that primarily consists of, or focuses on, music.
W. “Sports Program” means any Non-Network Television Program that is
categorized as a “sports program” on Data Reports, or which otherwise consists solely of content
similar to programming categorized as sports programming by a Data Provider. For purposes of
this Agreement, “Sports Program” shall not include any Program in the nature of non-
competitive sports-related entertainment including, but not limited to, professional wrestling,
cheerleading and marching band competitions, or ice skating exhibitions.
X. “STATION Web Site” shall mean Web Site(s) operated by or for
STATION as STATION-affiliated Web Site(s) and shall include any Web Site(s) that are shared
between two or more television stations in the same market, or two or more television stations
with a common owner.
Y. “Syndicated Television Program” means: (i) any Non-Network
Television Program supplied to LICENSEE and other television stations by a producer,
distributor or television network not licensed by SOCIETY; or (ii) any other Non-Network
Program that is not a Locally-Produced Television Program.
Z. “Television Broadcasting” shall mean free, unscrambled, point-to-
multipoint over-the-air broadcasting by means of television.
AA. Through-to-the-Audience License” means, in reference to the scope of
the rights granted under this Agreement, a license that authorizes the transmission and
retransmission of any licensed programming to viewers by the means described in
Subparagraphs 1.A.(1)-(3) so long as each entity involved in the transmission or retransmission
other than LICENSEE has an economic relationship to LICENSEE within the meaning of
Section II.S of the ASCAP Consent Decree. For the avoidance of doubt, nothing in this license
shall be construed as authorizing LICENSEE to grant to bars, restaurants, taverns, hotels, retail
establishments, and other similar businesses or establishments, the right to perform publicly any
of the musical compositions licensed under this Agreement by playing LICENSEE’s over-the-air
broadcasts on television sets within their physical locations to the public.
BB. “Web Site” shall mean an Internet computer service comprising a series
of interrelated web pages registered with a domain name registration service that STATION
transmits or causes to be transmitted either directly or indirectly to persons who receive the
service over the Internet by means of a personal computer or by means of another device capable
of receiving Internet transmissions.
3. Right to Restrict
A. The members of SOCIETY shall have the right, at any time and from time
to time, in good faith, to restrict the Television Broadcasting of compositions from musical
comedies, operas, operettas and motion pictures, or any other composition being excessively
broadcast, only for the purpose of preventing harmful effect upon such musical comedies,
operas, operettas, motion pictures or compositions, in respect of other interests under the
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copyrights thereof; provided, however, that the maximum number of compositions which may be
at any time thus restricted shall not exceed 750 and moreover that limited licenses will be
granted upon application to SOCIETY entirely free of additional charge as to restricted
compositions, if and when the copyright owners thereof are unable to show reasonable hazards to
their major interests likely to result from such Television Broadcasting; and provided further that
such right to restrict any such composition shall not be exercised for the purpose of permitting
the fixing or regulating of fees for the recording or transcribing of such composition; and
provided further that in no case shall any charges, “free plugs,” or other consideration be
required in respect of any permission granted to perform a restricted composition; and provided
further that in no event shall any composition, after the initial television broadcast thereof, be
restricted for the purpose of confining further television broadcasts thereof to a particular artist,
station, network or Program.
B. SOCIETY reserves the further right, at any time and from time to time, in
good faith, to restrict the Television Broadcasting of any compositions, over and above the
number specified in Subparagraph 3.A., only as to which any suit has been brought or threatened
on a claim that such composition infringes a composition not contained in the repertory of
SOCIETY or on a claim by a non-member of SOCIETY or by a member not listed in any current
list of SOCIETY’s members, as the same may be augmented from time to time, that SOCIETY
does not have the right to license the public performance of such composition by Television
Broadcasting.
C. Nothing in Subparagraphs 3.A. and 3.B. shall relieve SOCIETY of its
obligation to indemnify LICENSEE, as reflected in Paragraph 8. below, with respect to the
performances of any compositions in SOCIETY’s repertory, the performance of which
SOCIETY has restricted, prior to such time as LICENSEE receives notice from SOCIETY of
any such restriction.
4. Music Use Information
A. Subject to the provisions of Subparagraphs 4.B. and 4.C. below,
LICENSEE agrees to furnish to SOCIETY upon request during the term of this Agreement a list
of all musical compositions broadcast from or through STATION on LICENSEE’s Non-
Network Television Programs, showing the title of each composition and the composer and
author thereof, provided that LICENSEE shall not be obligated under this Paragraph 4. to furnish
such a list covering a period of more than seven (7) consecutive days or periods aggregating
more than four (4) weeks during any one calendar year. For purposes of this Paragraph 4., music
cue sheets containing the aforesaid information shall be deemed to constitute such a list.
B. With respect to Syndicated Television Programs broadcast from or
through STATION, LICENSEE shall be deemed to have complied with its obligations under
Subparagraph 4.A. if LICENSEE identifies the Program by its title, including episode title and/or
number, the name of the producer where available, and the copyright notice contained therein
where available. If SOCIETY does not have a music cue sheet for such Program, and
LICENSEE does have such a cue sheet, LICENSEE shall provide a copy of such music cue sheet
to SOCIETY at SOCIETY’s request.
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C. SOCIETY shall make requests pursuant to Subparagraph 4.A. only where
reasonably necessary for its purposes and, except where the information is necessary with respect
to SOCIETY’s survey of past performances, shall give LICENSEE notice of any request under
subparagraph 4.A. at least one (1) month prior to the commencement of the period covered by
said request. The provisions of Subparagraph 4.B. shall not limit LICENSEE’s obligation to
cooperate with SOCIETY in connection with any claim or demand for action referred to in
Paragraph 8 of this Agreement.
5. Calculation of the LNSPA Fraction, Fees, Payments and Dispute Resolutions
A. Calculation of the LNSPA Fraction. In advance of each License Year,
SOCIETY shall calculate LICENSEE’s LNSPA Fraction based on the information and Program
classifications contained in the Data Reports for the Data Period.
B. Fees. In consideration of the license herein granted, LICENSEE agrees
to pay SOCIETY for each calendar month beginning the Effective Date and for the remainder of
the Term of this Agreement, (1) the sum of (a) fifteen percent (15%) of the Monthly Blanket
License Fee (the “Monthly Base Fee”) plus (b) an amount equal to eighty-five percent (85%) of
the product of the Monthly Blanket License Fee multiplied by one minus the LNSPA Fraction
applicable to such License Year (the “Monthly Adjustment Fee”); or (2) $45.00, whichever is
greater (either of which shall be LICENSEE’s “Alternative Monthly License Fee”).
B. Payments. SOCIETY shall determine LICENSEE’s Alternative
Monthly License Fee and invoice LICENSEE during the applicable month. LICENSEE shall
remit payment of the Alternative Monthly License Fee to SOCIETY no later than the last day of
each month during the Term. If any such Alternative Monthly License Fee due under the terms
of this Paragraph 5 is not received by SOCIETY within twenty (20) days of when due,
LICENSEE shall pay to SOCIETY a late-payment charge of one percent (1%) per month (simple
interest) calculated from the date such payment was due and ASCAP may further assess
LICENSEE for reasonable, documented, out-of-pocket costs (exclusive of attorneys’ fees)
incurred by ASCAP in connection with collecting such amounts. The late-payment charge
provisions of this Subparagraph 5.B shall not apply in circumstances in which LICENSEE is
unable to submit a payment within the specified time period due to a force majeure (e.g.,
earthquake, hurricane, fire, flood, terrorist activities).
C. Dispute Resolutions.
(1) In the event that either SOCIETY or LICENSEE disputes the
accuracy of the information in the Data Reports used by SOCIETY to calculate the LNSPA
Fraction, including but not limited to classification of Programs listed in the Data Reports, the
disputing party shall provide notice to the COMMITTEE (and LICENSEE shall at such time
provide SOCIETY with a copy of any such LICENSEE notice) of the nature of such dispute
within ninety (90) days of SOCIETY’s receipt of all Data Reports for the applicable Data Period
for that License Year. Absent a timely challenge, the information in the Data Reports
concerning LICENSEE’s Programs shall be deemed accurate for purposes of calculating
LICENSEE’s LNSPA Fraction for that License Year.
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(2) If LICENSEE disputes SOCIETY’s calculation of LICENSEE’s
Alternative Monthly License Fee for reasons other than the accuracy of information in the Data
Reports used to calculate the LNSPA Fraction, LICENSEE shall notify SOCIETY and the
COMMITTEE and provide the basis for the dispute within thirty (30) days of its receipt of its
first invoice from SOCIETY pursuant to Subparagraph 5.B for the applicable License Year. If
LICENSEE fails to provide timely notice of a dispute pursuant to this Subparagraph 5.C.(2), and
there are no outstanding disputes pursuant to Subparagraph 5.C.(1), LICENSEE shall be deemed
to have consented to the applicable Alternative Monthly License Fee as determined by
SOCIETY.
(3) SOCIETY and COMMITTEE shall resolve disputes timely raised
pursuant to Subparagraphs 5.C.(1) and 5.C.(2), including any adjustments to LICENSEE’s
LNSPA Fraction or Alternative Monthly License Fee, in accordance with Paragraphs 9 and 11 of
Exhibit A.
(4) Notwithstanding the submission of a dispute pursuant to this
Paragraph 5.C., LICENSEE shall be obligated to submit to SOCIETY the full amount of
LICENSEE’s Alternative Monthly License Fee pursuant to Subparagraph 5.B, provided,
however, that the resolution of such dispute may result in an adjustment to such Alternative
Monthly License Fee and the issuance of a refund or a credit.
6. Local Marketing Agreement
A. If LICENSEE is, or becomes, a party to a Local Marketing Agreement,
LICENSEE and the LMA OPERATOR shall execute a letter to SOCIETY, in the form attached
as Exhibit C and made a part of this Agreement, requesting amendment of this License
Agreement to add the LMA OPERATOR as a party. When such a letter has been fully executed
by LICENSEE, the LMA OPERATOR and SOCIETY, this Agreement shall be deemed
amended accordingly. By signing Exhibit C, the LMA Operator becomes a party to this
Agreement and shall assume, with LICENSEE, all of the rights and obligations set forth in this
Agreement for the full period for which the Local Marketing Agreement is in effect.
B. In the event LICENSEE is a party to a Local Marketing Agreement, and a
dispute arises between SOCIETY and either the LMA OPERATOR or LICENSEE as to whether
LICENSEE or the LMA OPERATOR is responsible for the performance of any of the
obligations arising under this Agreement, SOCIETY shall be entitled to receive, upon request, a
copy of the portion of such agreement as sets forth the respective obligations of LICENSEE and
the LMA OPERATOR regarding the payment of fees, accountings, recordkeeping and
administrative responsibilities, or, if LICENSEE so elects, a copy of the entire Local Marketing
Agreement.
7. Breach or Default
Upon LICENSEE’s breach or default of any payment, accounting or substantive
reporting obligations required under the terms of this Agreement, SOCIETY may give
LICENSEE thirty (30) days’ notice in writing to cure such breach or default, and in the event
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that such breach or default has not been cured within thirty (30) days of said notice, SOCIETY
may then terminate this license.
8. Indemnity Clause
SOCIETY agrees to indemnify, save and hold harmless, and to defend
LICENSEE, its sponsors and their advertising agencies, and its and their officers, employees,
and artists, and each of them, from and against any claims, demands, or suits that may be made
or brought against them or any of them with respect to the performances under this Agreement of
any compositions in SOCIETY’s repertory that are written or copyrighted by members of
SOCIETY. LICENSEE agrees to give SOCIETY immediate notice of any such claim, demand,
or suit and agrees immediately to deliver to SOCIETY all papers pertaining thereto. SOCIETY
shall have full charge of the defense of any such claim, demand, or suit and LICENSEE shall
cooperate fully with SOCIETY in such defense. LICENSEE, however, shall have the right to
engage counsel of its own at its own expense who may participate in the defense of any such
action. SOCIETY agrees, at the request of LICENSEE, to cooperate with and assist LICENSEE,
its advertisers and their advertising agencies and its and their officers, employees, and artists in
the defense of any action or proceeding brought against them or any of them with respect to the
performance of any musical compositions contained in SOCIETY’s repertory, but not
copyrighted or written by members of SOCIETY. This Paragraph 8. shall not apply to
performances of any works that have been designated as restricted under Paragraph 3. of this
Agreement.
9. Rights of Termination
A. In the event of the termination or suspension of the governmental licenses
covering STATION or any substantial alteration or variation of the terms and conditions thereof,
or any major interference with the operations of STATION due to governmental measures or
restrictions, LICENSEE shall have the right to terminate this Agreement upon seven (7) days’
notice. Upon termination, this Agreement shall no longer remain in effect and the parties shall be
relieved of all obligations arising hereunder from the date of termination.
B. In the event of:
(1) any major interference with the operations of SOCIETY in the
state, territory, dependency, possession or political subdivision in which STATION is located, by
reason of any law of such state, territory, dependency, possession or political subdivision; or
(2) any substantial increase in the cost to SOCIETY of operating in
such state, territory, dependency, possession or political subdivision, by reason of any law of
such state, territory, dependency, possession or political subdivision, which is applicable to the
licensing of performing rights
SOCIETY shall have the right, upon notice to COMMITTEE and upon a showing that the
matters referred to in Subparagraphs 9.B.(1) and 9.B.(2) above affect the licensing of performing
rights under this Agreement, to apply to the judge with supervisory authority over the ASCAP
Consent Decree for whatever relief SOCIETY deems appropriate.
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10. Successors and Assigns
This Agreement shall inure to the benefit of and shall be binding upon the parties
hereto and their respective successors and assigns, but no assignment shall relieve the parties
hereto of their respective obligations hereunder as to performances broadcast, acts done and
obligations incurred prior to the effective date of the assignment.
11. Notices
Any notice filed under this Agreement shall be in written form or in a form
mutually agreed upon by SOCIETY and COMMITTEE and shall be sent to LICENSEE (or a
designated agent of LICENSEE). All notices required or permitted to be given by either of the
parties to the other hereunder shall be duly and properly given if: (a) mailed to the other party by
registered or certified United States mail; (b) sent by generally recognized same-day or overnight
delivery service; (c) mailed by first class United States mail; or (d) sent by electronic
transmission (i.e., electronic mail, facsimile or similar transmission), provided that the electronic
transmission is followed by a hard copy and receipt of the notice is acknowledged.
12. License Election and Eligibility
(A) LICENSEE may elect to enter this Agreement retroactive to January 1,
2015 by giving to SOCIETY written notice of such request by January 31, 2015.
(B) LICENSEE having previously been offered an ASCAP Local Station
Blanket Television License (“Blanket License”) and an ASCAP Local Station Per Program
Television License (“Per Program License”), and having elected to operate under one or the
other of such licenses, during the Term of this Agreement, LICENSEE may, if eligible, elect to
switch to either the Blanket License or the Per Program License as of the first day of a month,
prospectively on thirty (30) days’ written notice to SOCIETY. LICENSEE may exercise such
election no more than two times during any License Year during the Term of this Agreement.
(C) LICENSEE shall not be eligible to switch to this Alternative Blanket
License, and SOCIETY may reject any attempt to elect to switch made by LICENSEE, in the
event LICENSEE is at the time of such purported election delinquent for a period of ninety (90)
days in the payment of any reasonably undisputed fees due and owing under any existing or prior
license agreement with SOCIETY. In the event of any such lack of eligibility, LICENSEE’s
eligibility to elect to switch to this Alternative Blanket License as set forth in the preceding
subparagraphs shall be immediately restored upon LICENSEE’s curing any default in payment
of reasonably undisputed fees due and owing under an existing or prior license agreement with
SOCIETY.
13. Without Prejudice
The parties are entering into this Agreement without prejudice to any arguments
or positions they may assert in any future rate proceeding or other litigation concerning what
constitutes reasonable blanket, alternative blanket, and per program license fees and terms for the
local television industry or, in SOCIETY’s case, as to any other licensee.
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14. Applicable Law
This Agreement shall be governed by and construed in accordance with the laws
of the State of New York applicable to contracts made and to be performed entirely within such
State.
IN WITNESS WHEREOF, this Agreement has been duly executed by SOCIETY
and LICENSEE this _____ day of ____________, 2014, as of the day of ____________ 2014.
LICENSEE
AMERICAN SOCIETY OF COMPOSERS
AUTHORS AND PUBLISHERS
By:
By:
Title: Title:
EXHIBIT A
, 2012
Mr. John LoFrumento
American Society of Composers, Authors and Publishers
One Lincoln Plaza
New York, New York 10023
Re: ASCAP - Local Television Station
Blanket and Per Program Licenses
Dear John:
This letter sets forth the agreement reached between the American Society of
Composers, Authors and Publishers (“ASCAP”) and the Television Music License Committee,
LLC (the “Committee”) with regard to: (i) settlement of In re Application of Duhamel
Broadcasting Enterprises, et al. 11 Civ. 9311 (DLC) related to U.S. v. ASCAP, 41 Civ. 1395;
and (ii) fees and terms under the ASCAP - Local Television Station Blanket and Per Program
License Agreements covering the period January 1, 2010 through December 31, 2016
(collectively the “Licenses”). This letter agreement is expressly incorporated in
Subparagraph 1.G. of the Licenses, and is binding upon the parties hereto and upon the
signatories to the Licenses.
The parties agree as follows:
1. The interim agreement between the parties shall remain in effect through
the date of the Final Order terminating the pending proceeding referred to above. All interim fees
payable for the period January 1, 2010 through December 31 , 2011 shall become final, except
that interim per program license fees that are subject to adjustment pursuant to paragraphs 4 and
6 of the per program license for the term ending December 31, 2009 shall remain subject to such
adjustment.
2. Industry-wide Blanket License fees for all commercial local television
stations licensed under the Licenses by ASCAP shall equal:
January 1, 2012 - December 31, 2012 -- $91.5 million;
January 1, 2013 - December 31, 2013 -- $91.5 million;
January 1, 2014 - December 31, 2014 -- $91.5 million;
January 1, 2015 - December 31, 2015 -- $92.0 million;
January 1, 2016 - December 31, 2016 -- $92.0 million.
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3. ASCAP and the TMLC anticipate that the actual annual industry-wide
Blanket License fees payable by Licensees may be higher (or lower) than Industry-wide Blanket
License fees stipulated above for a given year as a result of changes in the total number of
individual local television stations licensed pursuant to either the LOCAL STATION BLANKET
TELEVISION LICENSE or the LOCAL STATION PER PROGRAM TELEVISION LICENSE.
In the event that the Blanket License fees payable by Licensees for any given calendar year are
greater (or less) than the Industry-wide Blanket License fees stipulated above for that calendar
year (exclusive of penalties payable by per program licensed stations pursuant to 4.C.(3) of the
LOCAL STATION PER PROGRAM TELEVISION LICENSE and late payment charges
pursuant to 4.C.(2) of the LOCAL STATION PER PROGRAM TELEVISION LICENSE or late
payment charges pursuant to 5.C. of the LOCAL STATION BLANKET TELEVISION
LICENSE) such overpayment (or underpayment) will be deducted from (or added to) the
Industry-wide Blanket License fee in the following calendar year.
4. Each local television station’s Blanket License fees shall be determined in
accordance with the provisions of the license fee allocation formula determined by the
Committee and attached as Exhibit B to the Blanket License and Exhibit B to the Per Program
License.
5. Each year during the term of the Licenses, ASCAP shall provide to the
Committee a list of current ASCAP-licensed local television stations. The list of licensees shall
be delivered to the Committee, in electronic form, on or before September 15 of each year during
the term. For each licensee, ASCAP shall provide the following information: (i) current station
call letters; (ii) designated market area (“DMA”); (iii) state; (iv) FCC identification number; (v)
ASCAP account number; (vi) channel position; (vii) station owner; (viii) network affiliation (if
any); and (ix) previous call letters (if any) if contained in any database within ASCAP’s control.
For each newly-licensed station appearing on the list, ASCAP shall also provide: (i) signed
status; (ii) date license was signed; (iii) date of first payment; and (iv) effective date of license.
Any licensee added to the list between September 16 of any given year and September 15 of the
following year will be included in the allocation formula the following year. In the interim, such
stations will be billed at the minimum fee for their respective DMAs. ASCAP shall clearly
identify in each list any licensees added to or deleted from the previous list. Without limiting
ASCAP’s right to terminate the Licenses pursuant to Paragraph 9 of the Per Program License
and Paragraph 7 of the Blanket License, ASCAP may not delete a station from the list of
licensees for failure to make payments under this agreement absent a court order.
6. In addition to the list of ASCAP-licensed stations described in Paragraph 5
above, ASCAP shall provide to the Committee no less frequently than once per quarter, in
electronic form, a list of current per program licensees identified by call letters, DMA, and per
program license effective date.
7. For each of the years 2011 - 2016, within sixty (60) days of receipt of a
written request from the Committee, ASCAP shall provide to the Committee, in electronic form,
cue sheets for a statistically significant and representative sample of programs, as selected by an
independent third party chosen by the Committee, for use solely in connection with the
Committee’s study of music use by the local television industry. The Committee may use the
results of any such music use study in connection with any negotiation, arbitration, or litigation
3
with ASCAP, BMI, SESAC, or any other performing rights organization, or for any other
reasonable purpose; provided, however, that the Committee shall not otherwise publicly disclose
the results of any such study without ASCAP’s prior approval.
8. The Second Circuit Court of Appeals, having ruled in the DMX
proceeding that ASCAP is required to offer to music users (as defined in AFJ2) an adjustable-fee
blanket license with a fee structure that accounts for performances otherwise licensed from
ASCAP members (“AFBL”), ASCAP will offer such a license to local television stations with a
start date effective January 1, 2015, with the specifics of a credit mechanism to be negotiated in
good faith between ASCAP and the TMLC by September 11, 2012 or by a date mutually agreed
upon by the parties. If the parties cannot agree on the specifics of such a license, either ASCAP
or the Applicants may apply to Magistrate Judge Dolinger for resolution of the issue(s).
9. At least once every six months, ASCAP and the Committee (or its
designated representative) shall meet in good faith to resolve any outstanding billing, payment,
or reporting disputes between ASCAP and any Licensee. Any good faith dispute that is not
resolved during such meetings may be submitted to arbitration as provided in Paragraph 11
below.
10. If ASCAP and the Committee (or its designated representative) are unable
to resolve one or more good faith disputes pursuant to Paragraph 9 above, and, in the judgment
of ASCAP and/or the Committee, such outstanding disputes affect a significant number of
Licensees and/or involve a substantial dollar amount, such outstanding disputes shall be finally
determined and resolved by a neutral arbitrator. The arbitrator shall be selected jointly by
ASCAP and the Committee and appointed for a two (2) year period commencing on January 1,
2014. If the parties are unable to agree upon an arbitrator by December 1, 2013, selection of an
arbitrator shall be conducted pursuant to the rules of the American Arbitration Association. If an
arbitrator is unable to fulfill his or her term for any reason, the parties shall, within a reasonable
time period, jointly select a new arbitrator to complete the term. If either ASCAP or the
Committee submits one or more outstanding good faith disputes to arbitration pursuant to this
paragraph, it shall so notify the arbitrator and the opposing party. Each party shall have thirty
(30) days from the date of such notice to submit a statement of claim, and any supporting
documentation, to the arbitrator and to the other party setting forth the party’s positions
regarding the dispute(s) at issue in the arbitration; provided, however, that the deadline for
submission of a statement of claim may be extended up to thirty (30) days at the discretion of the
arbitrator upon a showing of good cause by either party. The statements of claim shall not exceed
ten double-spaced pages in length (exclusive of any supporting documentation). The arbitrator
shall have thirty (30) days from his or her receipt of the statements of claim to issue a written
decision adopting one of the two positions put forth by the parties with respect to each disputed
issue under arbitration, and to determine a just division of costs between the parties as the
arbitrator may deem appropriate. The arbitrator’s decision shall be final. The arbitrator shall not
have authority to award punitive damages, attorneys’ fees or expenses to either party. In no
event shall either party submit to arbitration any good faith dispute that the parties have not yet
attempted to resolve themselves pursuant to Paragraph 10 above.
11. If, during the term of the Licenses, any dispute arises between ASCAP and
any Licensee concerning the interpretation of any of the provisions of this letter agreement or the
4
Licenses which, in the judgment of ASCAP and/or the Committee, has or may have industry-
wide impact, ASCAP and the Committee shall first endeavor to resolve such dispute, failing
which either party may refer the matter to Magistrate Judge Michael H. Dolinger for
determination (or, if such a reference is not possible, to the judge with supervisory authority over
the ASCAP Consent Decree). In the event of such a reference, either party, as a preliminary
matter, shall be entitled to assert that the dispute between them is not properly dealt with under
the terms of this provision.
12. If, during the term of the Licenses, ASCAP elects to license an entity
agreed or determined to be a broadcast television “network” previously unlicensed by ASCAP,
whose network programs are carried by local television stations licensed by ASCAP, such as
Fox, appropriate adjustments shall be made to the license fees payable by local television station
licensees consistent with the Opinions and Orders of Judge William Conner dated January 3,
1995 and January 27, 1995 in U.S. v. ASCAP: Application of Fox Broadcasting Company and
Fox Television Stations, Inc. ASCAP and the Committee shall confer and attempt to reach
agreement concerning the amount of any such fee adjustments and such agreement shall be
binding on all licensees. If ASCAP and the Committee shall fail to agree on such fee
adjustments, either party may refer the matter to Magistrate Judge Michael H. Dolinger for
determination (or, if such a reference is not possible, to the judge with supervisory authority over
the ASCAP Consent Decree).
13. The Committee shall treat as confidential any station’s financial or other
proprietary information or documents provided to it by ASCAP pursuant to the Local Television
Station Per Program License Agreement (“Confidential Information”). The Committee shall
limit access to Confidential Information to the Committee’s staff, representatives and counsel,
and shall not disclose Confidential Information to any third party or to any Committee member,
other than a Committee member who is employed by the station or station group that provided
Confidential Information to ASCAP, provided, however, that if the Committee is served with a
subpoena or other legal notice compelling the production of any such Confidential Information,
the Committee shall be required to give prompt written notice to ASCAP and the station or
station group that provided the Confidential Information to ASCAP of such subpoena or other
notice. ASCAP and/or the station or station group that provide the Confidential Information
shall inform the Committee in writing within seven (7) days of receiving written notification of a
subpoena or other legal notice of its intention to object to such production, in which event
ASCAP and/or the station or station group shall bear the burden of opposing such production. If
the subpoena requires a response or compliance in fewer than fourteen (14) days, the Committee
will inform ASCAP and the station or station group in writing within three (3) days of receiving
the subpoena, and ASCAP and/or the station or station group must inform the Committee of its
intention to oppose the production no later than five (5) days before compliance is called for.
14. ASCAP and the Committee are entering into this agreement without
prejudice to any arguments or positions they may assert in any future rate proceeding or other
litigation concerning what constitutes reasonable blanket and per program license fees and terms
for the local television industry or, in ASCAP’s case, as to any other licensee.
5
Please indicate your agreement to the above by signing on the line provided below.
Very truly yours,
s/ Charles Sennet
Charles Sennet
Chairman
Television Music License Committee, LLC
s/ John A. LoFrumento
John A. LoFrumento
Chief Executive Officer
American Society of Composers
Authors and Publishers
EXHIBIT B
Television Music License Committee
Methodology for ASCAP License Fee Allocation for the Period
From January 1. 2012 through December 31, 2016
The Industry-wide Blanket License fees for all commercial local television stations
licensed under the ASCAP-Local Television Station Blanket License Agreements covering the
period January 1, 2012 through December 31, 2016 (the “licensed television stations”), shall be
allocated among the licensed television stations as follows (subject to revision pursuant to the
provisions of Paragraph 10 below):
STEP 1: Allocation of Industry-Wide Fee Among DMA Markets
For each of the years 2012, 2013, 2014, 2015, and 2016 (“Contract Periods”), each
Nielsen DMA television market is to be assigned its gross allocable share of the Industry-wide
Blanket License fee
(as set forth in Paragraph 2 of the _____________, 2012 letter agreement
between the Television Music License Committee (the “Committee”) and ASCAP) in proportion
to its percentage of the total number of weighted Qualified Viewing Households throughout the
U.S. in an average quarter-hour during nine sweeps months over the course of the previous three
years.
1. The number of Qualified Viewing Households will be computed for each
licensed television station for the Contract Period based upon average quarter hour household
viewing data, Sunday through Saturday, 9 a.m. through midnight, compiled by Nielsen during
nine sweeps months over the previous three years
1
. The Qualified Viewing Households
attributable to each DMA market shall be calculated by multiplying the average quarter hour
viewing households for all licensed stations in the market by 420 (the number of quarter hours
between 9 a.m. and midnight in one week).
2. For each of the Contract Periods, the number of Market Qualified Viewing
Households in each of the roughly 210 DMA markets as measured by Nielsen
2
is to be
“weighted” as follows:
1
Qualified Viewing Households for the Contract Periods 2012 through 2016 will be based upon data
compiled by Nielsen for the nine November, February and May sweeps months prior to July 1 of the year preceding
the Contract Period. A Qualified Viewing Household is defined as a viewing household for a station licensed by
ASCAP for the Contract Period for which the allocation is being calculated.
2
The number of Market Qualified Viewing Households in Puerto Rico shall be determined based upon data
provided by Nielsen, or some other comparable provider of household audience information. The number of Market
Qualified Viewing Households in the Virgin Islands and Guam (or in any other market or territory in which
household audience information is unavailable) shall be determined by calculating the number of television
households in the U.S. as a percentage of the total U.S. population; multiplying that percentage by the population of
the market for which audience information is unavailable to derive the number of television households in the
market; and multiplying the resulting number by a fraction the numerator of which is the number of licensed stations
in the market and the denominator of which is the total number of stations in the market. For purposes of assigning
an allocable share of the industry-wide blanket license fee to television markets in the Virgin Islands, Guam and
Puerto Rico, the number of Market Qualified Viewing Households in each of these markets is to be given the same
2
DMA Markets 1 - 10 Multiply by 1.21
DMA Markets 11 – 25 Multiply by 1.05
DMA Markets 26 – 50 Multiply by 0.92
DMA Markets 51 – 75 Multiply by 0.85
DMA Markets 76 - 100 Multiply by 0.85
DMA Markets 101 - 125 Multiply by 0.80
DMA Markets 126 plus Multiply by 0.75
The purpose of the weighting is to reflect, within broad parameters, that a household in a smaller
market does not represent the same value as a household in a larger market.
3. For each Contract Period, each market is to be assigned its share of the
industry’s overall blanket license fee by the following procedure: The Market Qualified
Viewing Households in the DMA market will be multiplied by the weight set forth in Paragraph
2 above for that DMA market to determine the weighted number of Market Qualified Viewing
Households for the DMA market. Thus, for example, the top ten markets in terms of three-year
households average will receive a 1.21 multiple. Each market’s weighted Market Qualified
Viewing Households number is to be divided by the total U.S. weighted market Qualified
Viewing Households to derive a percentage of U.S. weighted Market Qualified Viewing
Households for each market. This weighted percentage is then applied to the industry-wide
blanket license fee. Thus, if the weighted percentage of total U.S. Market Qualified Viewing
Households for DMA market “x” is one percent, DMA market x’s share of the industry-wide
$91,500,000 fee for the January 1, 2012 through the December 31, 2012 Contract Period would
be $91,500,000 x 1%, or $915,000.00.
STEP 2: Allocation of Blanket License Fees to Stations Within Each Market
4. Each station’s percentage share of the DMA market blanket license fee
shall be calculated as follows: Station Qualified Viewing Households for stations affiliated with
networks licensed by ASCAP (currently the ABC, CBS, NBC, Univision, and TeleFutura
television networks) shall be calculated by multiplying the station’s average quarter hour
viewing households by 420 (the number of quarter hours between 9 a.m. and midnight in one
week); and subtracting one hundred percent (100%) of the station’s average prime-time DMA
viewing households (which equals the station’s average prime-time DMA quarter hour
households times 88 (the number of quarter hour units in prime time in one week)).
3
Station
Qualified Viewing Households for stations not affiliated with networks licensed by ASCAP shall
weight as the Nielsen DMA that most closely approximates the number of Market Qualified Viewing Households in
these markets.
3
For example, on the East Coast, prime-time occupies Monday – Saturday, 8:00 – 11 p.m. and Sunday, 7:00
– 11:00 p.m.
3
be calculated by multiplying the station’s average quarter hour viewing households by 420. A
station’s percentage share of the DMA market blanket fee shall be calculated by dividing its
Station Qualified Viewing Households number by the total Station Qualified Viewing
Households for all stations in that DMA market and multiplying the resulting percentage by the
DMA market blanket license fee (reduced by the amount of any minimum fees assigned to
stations in the market pursuant to paragraph 5 below).
4
5. Stations whose ratings are not reported by Nielsen during the relevant
period shall be assigned a minimum blanket license fee equal to the greater of 0.25 percent of the
allocable blanket license fee for its market or an annual blanket license fee of $540 (or $45 per
month for partial years) (“Minimum Blanket License Fee”). The fees assigned to a DMA market
pursuant to Step 1 above shall be reduced by the amount of any Minimum Blanket License Fees
assigned to stations in that DMA market, and the balance of that DMA market’s share of the
industry-wide fee shall be allocated among the remaining licensed stations in that DMA market
based on the methodology set forth in Step 2 hereof. If, by way of example, the blanket license
fee allocated to market “k” is $300,000, and there are operating in market “k” two stations whose
ratings are not reported by Nielsen, each of those stations would be assigned a blanket fee of
$750 ($300,000 x .0025). The remaining stations in market “k” would pay their appropriate
percentages, not of $300,000, but of $298,500.
STEP 3: Adjustment to Reflect Equitable Distribution of the Administrative Costs
Incurred by the Television Music License Committee
6. For each Contract Period, the Committee shall determine: a) the total
contributions to be requested from the television industry for its costs of administering the
ASCAP-Local Television Station Blanket and Per Program License Agreements (the “ASCAP
Licenses”) and the Committee’s ongoing representation of the television industry in regard to
music performance licenses; and b) the percentage (the “Contribution Percentage”) and amount
(the “Contribution Amount”) of these total contributions to be requested from each station
licensed under the ASCAP Licenses. The contributions requested by the Committee for a given
Contract Period shall be payable by stations between April 1 of the relevant Contract Period and
March 31 of the subsequent Contract Period or as otherwise determined by the Committee, but in
no event later than June 30 of the subsequent Contract Period (the “Contribution Period”).
7. Upon the expiration of a Contribution Period, the Committee shall
calculate a contribution adjustment for each ASCAP licensed station by: a) multiplying the
station’s Contribution Percentage for the relevant Contract Period by the total contributions
actually received by the Committee during the Contribution Period (the “Adjusted Contribution
Amount”); and b) calculating the difference between the actual amount paid by each station
during the Contribution Period and the station’s Adjusted Contribution Amount (the “Allocation
Credit/Debit”).
4
The fees for each of the licensed stations in the Virgin Islands and Guam shall equal the amount of the
industry-wide fee assigned to the market divided by the total number of licensed television stations in that market.
4
The Allocation Credit/Debit for the Contribution Periods ending in 2010 and 2011 have already
been processed on the accounts of applicable stations. No further adjustment will be made for
those Contribution Periods.
A station’s Allocation Credit/Debit for each Contribution Period ending in the Contract Periods
2012 through 2016 shall be processed on the accounts of applicable stations in December of each
Contract Year, provided that the Committee provides ASCAP the amount of the Allocation
Credit/Debits for the Contract Period no later than October 31 of the year in which the
adjustment is to be made.
The result of this adjustment is that a station that pays to the Committee for any given Contract
Period its full Contribution Amount (or any sum greater than its Adjusted Contribution Amount)
will receive a credit against its ASCAP fees, and any station that does not pay any portion of its
Contribution Amount (or pays a sum less than its Adjusted Contribution Amount) to the
Committee for any given Contract Period will pay additional ASCAP fees.
8. If, during a given Contract Period, ASCAP enters into a license agreement
with a television station that was not previously licensed (a “New Television Station”), such
station shall pay the minimum monthly fee of forty-five dollars ($45.00) for the remainder of the
Contract Period following the effective date of its license agreement. The fees payable by all
stations in the New Television Station’s market in the following Contract Period shall be
reallocated in the manner set forth above without any increase in the total fee amount otherwise
allocable to the relevant market.
9. Once a station’s allocated fee has been calculated for a given Contract
Period, there shall be no further adjustment to that station’s fee for the duration of that Contract
Period; provided however that if the station was assigned in error a blanket license fee that was
higher or lower than it should have been assigned pursuant to the methodology set forth above,
such over-allocation or under-allocation amount shall be factored into the fees allocated to the
station for the subsequent Contract Period.
10. If during the term of the ASCAP-Local Television Station Blanket and Per
Program Licenses, the Committee determines that there is good cause to revise the allocation
methodology set forth above in any manner, the Committee may refer the matter to Magistrate
Judge Michael H. Dolinger (or if such reference is not possible, to the judge with supervisory
authority over the ASCAP consent decree) to request approval of any proposed revisions to this
methodology. The Committee shall make such a request at a public hearing (written notice of
which will be provided to ASCAP and to all licensed television stations no less than thirty days
in advance of the hearing) at which all interested parties will be given the opportunity to be heard
in support of, or in opposition to, the proposed revisions. Any decision by the Court approving
or denying the proposed revisions shall be final and shall not be subject to appeal.
EXHIBIT C
LOCAL MARKETING AGREEMENT AMENDMENT LETTER
Dear ASCAP:
1. ________________________ (“LICENSEE”) has entered into a Local Marketing
Agreement with _______________________ (“LMA OPERATOR”) for television station
__________ for the period ____________________ through ___________________.
2. LICENSEE and LMA OPERATOR wish to add LMA OPERATOR as a party to
the Local Television Station License Agreement in effect between LICENSEE and ASCAP (“the
License”), and LMA OPERATOR shall assume all of the rights and obligations of LICENSEE
as set forth in the License for the full period of the Local Marketing Agreement referred to in
Paragraph 1 above.
3. LICENSEE/LMA OPERATOR (circle one) shall be responsible for the payment
of any fees owing to ASCAP pursuant to the License.
4. LICENSEE/LMA OPERATOR (circle one) shall be responsible for the
submission to ASCAP of any reports, tapes or other information pursuant to the License.
5. LICENSEE and LMA OPERATOR jointly designate the following single address
for billing and other regular correspondence, and the following single address for any notices in
accordance with the License:
Billing Address: __________________ Notice Address: _______________
__________________ __________________
__________________ __________________
Please indicate your consent to the amendment of the License Agreement in accordance
with this letter by countersigning the letter in the space provided below and returning a copy to
us.
Very truly yours,
LICENSEE
Dated: _________________________ By: ______________________________
Title: ______________________________
LMA OPERATOR
Dated: _________________________ By:_________________________________
Title: ______________________________
2
The undersigned, American Society of Composers, Authors and Publishers,
hereby consents and agrees to the amendment of the above mentioned License Agreement.
AMERICAN SOCIETY OF COMPOSERS,
AUTHORS AND PUBLISHERS
Dated: ________________________ By:_________________________________
Title: ______________________________