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Agreement Reached with SESAC

December 5, 2003

The American Council on Education and NACUBO have reached an agreement with SESAC on a new model license for on-campus performance of music in the organization's repertoire. The new agreement, which SESAC will mail to institutions over the next few weeks, combines the coverage provided by SESAC's general College and University license and its Internet license. A letter from the three organizations explaining the agreement will be included in the mailing.

The term of the agreement has been shifted to align with the schedule used for college and university licenses with the two other performing rights organizations, ASCAP and BMI. It covers the period that began July 1, 2003, until June 30, 2007. Rates for the first year will be $.089 per FTE with a minimum of $180. Optional coverage for locally originated cable television will be included at no additional charge for the first year, but will cost $.018 for the second year. A schedule for modest price increases is included for the four years covered.

Most colleges and universities are currently licensed with SESAC and may have paid license fees past July 1, 2003, the effective date of the new agreement. SESAC will credit these payments to the new agreement. The balance of any license fees due for the initial period of the new agreement, July 1, 2003 through June 30, 2004, will be invoiced by SESAC when they receive the completed agreement. Subsequent payments will be due January 1 of each year based on the full-time equivalent enrollment in the fall.

The NACUBO contact for music licensing issues is Anne Gross, vice president, business and regulatory affairs. She can be reached at anne.gross@nacubo.org or 202.861.2544.