Internet radio service Pandora is suing performing rights organisation the American Society of Composers, Authors and Publishers (ASCAP) in an attempt to move it to lower songwriter royalty rates.
Digital Music News reports that on Monday, Pandora filed the lawsuit which stated that rates, based on an ‘experimental’ licensing agreement set in 2005, are "ill suited and not reasonable."
It was also reported that after a year of discussions both parties failed to come to a compromise with ASCAP proposing ‘non-negotiable’ rates.
A publishing executive recently revealed to Digital Music News that the ratio of Pandora payments to labels against that of songwriters and publishers is $12.50 to $1, whilst publishers generally are fighting for higher fees.
To combat this problem Sony/ATV is reportedly striving to create independent royalty rates.