A federal court has established a licensing rate owed by AOL, RealNetworks, and Yahoo! to the American Society of Composers, Authors and Publishers (ASCAP) and its associated members for the online performance of musical works. The fee works out to 2.5% minus traffic acquisition costs and other expenses, with the total bill for back payments and expected future licensing possibly totaling upwards of $100 million combined for the three Internet firms.

"Musical works both support and enhance the business models of many major technology- and Internet-driven organizations - especially those that derive advertising revenue from consumer traffic and engagement," according to ASCAP CEO John A. LoFrumento. "This historic decision, for the first time, provides a clear framework for how the online use of musical works should be appropriately valued. This decision also provides clear validation of the flexibility and applicability of the ASCAP blanket license model relative to the use of musical works on the Internet - something the Court itself specifically noted in its written decision."

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