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Members Advised to Wait on New SESAC License

September 10, 2003

In 2002, NACUBO and the American Council on Education renegotiated model licensing agreements with the two largest performing rights organizations, ASCAP and BMI, which included coverage for the performance of music over the Internet or internal computer networks for the first time, in addition to covering other uses of music on campus. The third performing rights organization, SESAC, was not involved in the negotiations.

NACUBO has learned that SESAC has sent a new license covering only Internet use to some colleges and universities. This license appears to be in addition to the license institutions may already have with SESAC for all other uses of music. NACUBO and ACE have contacted SESAC and asked that it enter negotiations with the associations on a new model license and cease marketing the Internet license to institutions in the meantime. Among other issues, the rates in the proposed license appear to be out of line with those negotiated with the other organizations. NACUBO recommends that institutions hold off on signing a new agreement with SESAC until further notice.

NACUBO Contact: Anne Gross, vice president, business and regulatory affairs, anne.gross@nacubo.org.