Music-Rights Group Behind Drake, Springsteen Wins Justice Department Backing in Radio Spat

(Bloomberg) -- Global Music Rights, a group that represents artists such as Drake and Bruce Springsteen, won the backing of the U.S. Justice Department in its fight against allegedly illegal price fixing by radio stations.

The government weighed in on GMR's lawsuit against Radio Music Licensing Committee, saying that the committee's arguments made in seeking the dismissal of the lawsuit were wrong.

“RMLC wrongly argues that GMR's complaint does not plead price fixing,” the Justice Department said. The judge should decide whether GMR has a legitimate case, the justice department said.

It's rare for the Department of Justice to weigh in on a case in which it has no stake, Dan Petrocelli, lead counsel for Global Music Rights, said in an interview. The department met with both sides in the case earlier this year, he said.

“The antitrust division of the department of justice cares about protecting the rights of artists,” Petrocelli said.

The Radio Music Licensing Committee didn't immediately respond to a request for comment.

Top songwriters like Steve Miller, Pearl Jam's Eddie Vedder and Drake signed with Global Music Rights, believing the organization would help them secure a better rate from radio stations, restaurants and other groups that pay what's called a performance royalty.

“It's great for artists' rights,” Irving Azoff, manager of John Mayer and several classic rock bands, said in an interview outside a Billy Joel concert. “The radio cartel has been there since the beginning, and maybe the sands are shifting.”

To contact the reporter on this story: Lucas Shaw in Los Angeles at lshaw31@bloomberg.net

To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, Joe Schneider

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