Licensing agency BMI is set for a court battle with internet radio service Pandora in a royalties’ dispute.

The trial, which begins in Manhattan tomorrow, will determine how much Pandora pays BMI’s songwriters and music publishers to stream their songs.

“The foundation of Pandora’s business was built with the words and music of songwriters, and we are fighting on their behalf to secure rates that reflect the true value of their work in today’s digital marketplace,” said BMI’s general counsel ...