Download Prices Could Jump As ASCAP Demands Royalty Double Dip

The Digital Media Association representing providers like Yahoo! and Napster has submitted a ‘friend of the court’ brief opposing ASCAP's claim that music downloads are ‘public performances’ and subject to a public performance royalty.  DiMA’s brief was co-signed the NARM, the Entertainment Merchants Association and the Consumer Electronics Association.

“ASCAP’s assertion in federal court that digital distributions of music and video are also public performances confounds legal, business and technological reality,” said Jonathan Potter, DiMA’s Executive Director.  DiMA members already pay to distribute content via synchronization, reproduction and distribution licenses including “mechanical” licenses.  But ASCAP and BMI claim that a download is also a “public performance” that justifies an additional license and royalty.

If ASCAP and BMI prevail  the result would be higher download prices which could drive more consumers to unlicensed free P2P networks.