Pandora loses to BMI in court hearing, vows to appeal
Headline Legal News
Pandora Media Inc. lost a court hearing Thursday in a dispute with music publishing rights group BMI over royalty rates, but the Internet streaming leader said it will appeal.
Pandora said it's confident it can win later since the appeals court — the 2nd U.S. Circuit Court of Appeals in New York — last week ruled in its favor in a case against the other major publishing group known as ASCAP.
Thursday's ruling would force Pandora to pay 2.5 percent of its revenue to songwriters and music publishers, up from 1.75 percent. Last week's appeals court ruling allowed Pandora's 1.85 percent rate to ASCAP to stay intact.
If the appeal fails, Pandora says its costs could rise by 0.8 percent of revenue, which would have amounted to about $1.7 million last quarter.
BMI called the ruling a victory for the more than 650,000 songwriters, composers and publishers it represents.
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Texas Adopts Statewide Texting-While-Driving Ban
Effective September 1, 2017, Texas will become the 47th state to pass a statewide ban on texting while driving. Governor Abbott’s signing of House Bill 62 is an effort to unify Texas under a uniform ban and remedy the “patchwork quilt of regulations that dictate driving practices in Texas.”
The bill specifically prohibits drivers from reading, writing, or sending an electronic message on a device unless the vehicle is stopped. That includes texting and emailing. It does not, however, prohibit dialing a number to call someone, talking on the phone using a hands-free device, or using the phone’s GPS system.
Violations would be punishable by a fine ranging from $25 to $99, to be set by each municipality. Although penalties could rise to as much as $200 for repeat offenders.
Studies have found that a driver’s reaction time is half as much when a driver is distracted by sending or reading a text message. According to state officials, in 2015 more than 105,000 traffic accidents in Texas involved distracted driving, leading to at least 476 fatalities.