BMI.com Launches New `Klick-Thru' Licensing Solution for Internet Music; On-Demand License System Brings Digital Music Rights to Market.

Entertainment Editors & Music/High-Tech Writers

NEW YORK--(ENTERTAINMENT WIRE)--May 16, 2000

BMI today becomes the world's largest online digital rights management company as it launches the Digital Licensing Center (DLC) and its `Klick-Thru' online copyright licensing system. The DLC allows Internet companies to digitally obtain their music performance license through BMI.com. The licenses allow them to publicly perform all of BMI's 4.5 million copyrighted works from its 250,000 songwriters, composers and music publishers.

"The digital licensing center is the next step in BMI's mission to accelerate the development of new revenue streams for songwriters, composers and music publishers," said Frances W. Preston, President and CEO of BMI. "With the distribution power of new audio formats, digital licensing can create new careers and new revenue streams that will benefit the Internet medium, content creators and consumers alike."

BMI music performance license fees are based on the revenues of the licensee. The fees generated are distributed as royalties to songwriters, composers and music publishers based on actual usage of music on the Internet. Annual license fees for small sites start as low as $250 and increase according to a website's annual gross revenues. Currently the DLC serves smaller e-commerce sites. BMI plans to expand the system in the near future to license larger sites, those making more than $25,000 in revenues per year. The DLC provides its online licensing services 24 hours a day, seven days a week in a totally paperless electronic environment

"The Digital Licensing Center provides the first easy Klick-Thru solution to a complex copyright challenge," said Richard Conlon, Vice President, Marketing and Business Development, Media Licensing at BMI. "We believe that by providing developers and dot.com companies with a simple, cost effective solution for licensing the content on their sites, we can help monetize music copyrights in the digital world for our songwriters."

Some early users of the DLC include Get Smashed Radio Broadcasting, BNET, Inc., Boxorox.com, Planet Live, Inc., Alaska Direct and K2 Sports, Inc. "It's terrific," said Dave Biondi, President of BNET, calling it, "...the best thing since pop-top beer cans." James Boswell, Marketing Director of K2 Sports added, "It's a lot easier...very much appreciate it"; and Dr. Daniel Coffeen, Managing Member of Planet Live described it as, "Clean and clear. I was floored!"

The DLC is one of 12 programs collectively called the Horizon Project(TM), propelling BMI into the new economy. The Horizon Project(TM) has already launched many of these programs, including the Electronic Music Reporting system (EMR) that allows broadcasters to streamline the playlist reporting process that is used by BMI to pay royalties to its writers. The playlist software programs that most commercial radio stations use can now automatically upload performance information to BMI, a process previously completed by both sides manually.

BMI, founded in 1940, is an American performing rights organization that represents more than 250,000 songwriters, composers and music publishers in all genres of music. Through its music performance and reciprocal agreements with sister organizations around the world, it grants businesses and media access to its repertoire of more than 4.5 million songs and compositions.