The Department of Justice has made it official—it will not make any changes to the decades-old consent decrees overseeing ASCAP and BMI and their relationship with music users such as radio. The decision had been shared with various players in the music industry—including with broadcasters—during the past month. But the DOJ is now confirming that it has concluded “no modifications are warranted at this time.” DOJ antitrust attorneys had been reviewing the consent decrees for the past two years.

The consent decrees require each organization to offer “full work” licenses that give radio stations and other music users the right to publicly perform, without risk of copyright infringement, all works in ASCAP’s and BMI’s repertories.

The National Association of Broadcasters is welcoming the announcement. “This decision will ensure that ASCAP and BMI continue to fairly and efficiently license musical works in a manner that is pro-competitive,” NAB president Gordon Smith said in a statement.

Justice’s decision will have an impact on the radio industry in the coming months as the current royalty agreements with the two performance rights organizations are set to expire at the end of the year. “Broadcasters look forward to continuing our close relationship with these performance rights organizations, which have worked to the mutual benefit of songwriters, music licensees and listeners around the world for decades,” Smith said. Under the current system, radio broadcasters pay $350 million and local television broadcasters some $150 million to songwriters and their music publishers every year.

ASCAP and BMI have expressed dismay with the outcome of the review. In particular the performance rights organizations dispute a new DOJ stipulation mandating a 100% licensing requirement, which would allow a rights holder to license a song even though not all the songwriters on the track are represented by the same PRO—as long as they all split the revenue.

In response, ASCAP and BMI have announced a coordinated legal and legislative challenge to the DOJ decision. BMI on Thursday filed a pre-motion letter in U.S. District Court in New York to take on the new 100% licensing requirement. “We have no recourse other than to fight the DOJ’s interpretation in court,” BMI president Mike O’Neill says in a statement. “It won’t be easy, and we know it will take time, but we believe that it is the right thing to do and in the best interest of the industry at large.”

Meanwhile, in Washington, ASCAP announced it will take the lead in Congress where the two performance rights organizations are seeking a “legislative solution” to the 100% licensing mandate that the songwriting community believes will cause “chaos” in the marketplace. “That is why ASCAP will work with our allies in Congress, BMI and leaders within the music industry to explore legislative solutions to challenge the DOJ’s 100% licensing decision and enact the modifications that will protect songwriters, composers and the music we all love,” ASCAP president Elizabeth Matthews says in a statement.

While lawmakers are on a seven-week summer recess, one ally on Capitol Hill is already backing such an effort. Rep. Doug Collins (R-GA), the vice chair of the House Judiciary Subcommittee on Courts, Intellectual Property, says the DOJ ignored concerns expressed by the songwriters, the U.S Copyright Office and several members of Congress. “Instead of instituting meaningful reforms to the outdated consent decrees, DOJ chose to broadly expand its interpretation of existing consent decrees at the expense of songwriters and the music industry as a whole,” Collins says. “The decision undermines copyright law and effectively pulls already struggling songwriters off of life support.”

While those challenges move forward, ASCAP and BMI will simultaneously need to determine how to comply with the new requirements. The Department of Justice is giving the two organizations one year to implement the new mandate.

For more info on this and other news pertaining to the radio industry visit http://www.insideradio.com/