Pandora has reached a settlement with a group of comedians, including the estates of Robin Williams and George Carlin, after a legal battle over royalties for streamed spoken-word comedy. The resolution was finalized during a court-mediated session on January 28, 2024, following disputes over how royalties should be calculated and paid.
Background of the Royalties Disagreement Among Comedians
Since 2022, nine comedians and their estates, such as George Lopez and Lewis Black, have contested the royalty payments Pandora awards for streaming their comedy performances. Their primary concern was to have royalties for their digital comedy streams reflect payments for both the recorded performances and the underlying written jokes, akin to how music artists are compensated for masters and publishing rights. Traditionally, comedians received streaming royalties solely for the recorded content, without compensation for the written material behind their jokes.
Settlement Details and Pandora’s Position on Royalties
The terms of the settlement remain confidential, but Pandora’s parent company SiriusXM clarified that the agreement does not grant comedians either retroactive payments or future licenses covering the spoken-word publishing rights sought in the lawsuit. A spokesperson from SiriusXM stated,
“We at SiriusXM and Pandora are pleased to have resolved this matter amicably, with an outcome that affirms the legality of our long-standing approach to licensing spoken-word comedy recordings,”
and continued,
“We look forward to continuing our mutually beneficial relationship with comedians, using the same licensing practices that have long been standard across streaming services, broadcasters and other platforms that help comedians and spoken-word artists share and promote their work.”
Legal Proceedings and Judicial Recommendations Leading to Settlement
The legal challenge included significant involvement from court-appointed special master Suzanne H. Segal and presiding Judge Mark C. Scarsi. Segal had indicated that Pandora might have an implied license to the comedians’ written jokes due to years of streaming their shows without prior objection. Judge Scarsi, reviewing Segal’s recommendations, encouraged the parties to seek a settlement rather than prolong costly litigation, noting in September 2023,
“The court anticipates that further proceedings before the special master will require further significant expenditures by the parties and the special master (whose fees are borne by the parties) given the anticipated scope of the court’s instructions for further development.”
He added,
“On that basis, following the policy of this district to encourage disposition of civil litigation by settlement when such is in the best interest of the parties, the court orders the parties to engage in a settlement conference.”
Comedians’ Response and Implications for Future Royalty Payments
When contacted for comment following the settlement, Richard Busch, the attorneys representing the comedians, confirmed simply, We settled amicably. The decision to settle reflects a cautious resolution to a complex issue involving the scope of royalties for spoken-word content on streaming platforms.
This settlement, while resolving the immediate dispute, leaves open questions about how royalties for comedy content may be handled across streaming services moving forward. Pandora’s position underlines the continued use of established licensing frameworks for spoken-word recordings, which could influence similar cases in the industry.
