Hasta La Creative!

Lobbyists for the music industry and streaming music services are gearing up to battle one another after the Justice Department said it will review decades-old agreements that govern songwriter royalties.

The review, which follows court battles between rights holders and Pandora internet radio, will “examine the operation and effectiveness of the consent decrees” dating back to 1941 with two major songwriter groups, the American Society of Composers, Authors and Publishers and Broadcast Music Inc., the department said in a notice today.

The review could lead to changes in the rules governing how much Pandora, the leader in internet radio, pays songwriters each time their works are played. Ascap and BMI, both based in New York, represent hundreds of thousands of songwriters, composers and publishers. They’ve argued in court disputes with Pandora that the agreements with the Justice Department don’t take into account the rise of digital media. Pandora has argued that it is isn’t on an even playing field with terrestrial radio and may not be able to sustain its buisiness model if rates keeps climbing.

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