Opinion ID: 2762941
Heading Depth: 3
Heading Rank: 3

Heading: Setting the PSS Rates

Text: Both parties requested PSS rates that would drastically depart from the then-prevailing rate of 7.5%. SoundExchange requested rates that would begin at 15% in 2013, and rise to 45% in 2017. Id. at 23,056. SoundExchange based its rate proposal on its analysis of “over 2,000 marketplace agreements, representing a variety of rights licensed.” Id. at 23,057. Music Choice requested a rate of 2.6%, which it based on the rates it pays performing rights societies (such as ASCAP and BMI) for the use of copyrighted musical works. Id. at 23,056–57. The Judges “conclude[d] that neither Music Choice’s nor SoundExchange’s proffered rate guidance provide[d] a satisfactory benchmark upon which they [could] rely to determine the sound recording performance rates for” PSS. Id. at 23,058. Lacking guidance from the parties, the Judges 10 considered the then-current 7.5% rate, which had been determined by settlement negotiation, in light of the record and the Section 801(b) factors. The Judges concluded that “nothing in the record persuade[d] [them] that 7.5% . . . is too high, too low or otherwise inappropriate.” Id. The Judges ultimately set PSS rates at 8.5%, with an upward adjustment to account for Music Choice’s planned channel expansion. The rate would start at 8% in 2013 and increase to 8.5% for 2014 through 2017. Id. at 23,061.