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Edition: U.S. Article Comments (0) Email Print Reprints Read Supreme Court to hear Anna Nicole Smith estate case 4:11pm EDT NASA showdown looms as shuttle workers face layoffs 27 Sep 2010 Middle-aged suicides on rise in U.S., study finds 27 Sep 2010 UPDATE 1-Republicans block ending offshore jobs US tax breaks 2:28pm EDT Poll gives former Bush official big lead in Ohio 4:29pm EDT Shared BOJ divided on need to ease policy next week 4:57am EDT NASA showdown looms as shuttle workers face layoffs 27 Sep 2010 Middle-aged suicides on rise in U.S., study finds 27 Sep 2010 5 Reasons the Media Cover Apple So Much 27 Sep 2010 Millionaire Segway owner dies in cliff fall 27 Sep 2010 Watched BlackBerry's new PlayBook Mon, Sep 27 2010 The day ahead: September 28, 2010 Mon, Sep 27 2010 N.Korean leader taps son as general 2:01am EDT Court orders music download licence fee review Tweet This Share on LinkedIn Share on Facebook Related News US court sees raw film footage in epic Chevron case Thu, Sep 23 2010 Argentina loses US appeal on 101 pct interest rate Thu, Sep 23 2010 Thai court blocks 3G auction Thu, Sep 23 2010 Judge allows "game-changing" Lehman case appeal Tue, Sep 21 2010 US court hears suit over Rio Tinto Papua NG mine Tue, Sep 21 2010 Related Topics Technology » Media » Stocks By Grant McCool NEW YORK | Tue Sep 28, 2010 1:00pm EDT NEW YORK (Reuters) - The fees paid by Yahoo Inc and RealNetworks Inc for licenses to play music over the Internet should be recalculated, a U.S. appeals court ruled on Tuesday. Ruling on a separate issue, the court, a three-judge panel of the 2nd U.S. Circuit Court of Appeals in New York, agreed with a lower court's 2007 decision "that a download of a musical work does not constitute a public performance of that work" under copyright law. Yahoo! and RealNetworks had sought separate blanket licenses to publicly play the entire repertory of the American Society of Composers, Authors and Publishers (ASCAP) on some of their websites and services. ASCAP appealed the ruling that a music download does not constitute a public performance, and the Internet companies appealed the lower court's assessment of fees for the blanket licenses. More than 390,000 composers, songwriters, lyricists, and music publishers in the United States exclusively license their music through ASCAP, according to the not-for-profit organization. ASCAP licenses about 45 percent of all of the musical works that are played online, according to the court record. The panel said the analysis by a U.S. district court in Manhattan in determining the fees in 2008 was flawed in two major respects and sent it back for reconsideration. Representatives of the two companies and ASCAP could not immediately be reached to comment. "First, the district court did not adequately support the reasonableness of its method for measuring the value of the Internet companies' music use," said the written opinion by the appeals panel. It added that the lower court "did not adequately support the reasonableness" of applying a uniform royalty rate of 2.5 percent to the Internet companies' music-use revenue. The calculation was made by multiplying the total revenue from licensed services by a music-use-adjustment factor, a fraction that reflected the amount of time users spent streaming performances of music relative to their overall time on the website, according to the court record. A dispute also arose between the parties over whether digital downloads, or copies of the music, are also public performances for which the copyright owners must be compensated. In agreeing with the lower court ruling on that issue, the panel cited a section of the Copyright Act stating that to "perform" means to recite, render, play, dance or act it either directly or through a device or process. "Music is neither recited, rendered, nor played when a recording (electronic or otherwise) is simply delivered to a potential listener," the panel's opinion said. The case is USA v American Society of Composers, Authors and Publishers et al, U.S. Court of Appeals for the 2nd Circuit No. 09-0539. (Reporting by Grant McCool; Editing by Steve Orlofsky) Technology Media Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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