19 Dec The Court Rules Against The U.S. DOJ Antitrust Division
Public Performance Rights Organizations for songwriters, like ASCAP and BMI (PRO) beat back an effort from the U.S. Department of Justice
December 19, 2017.
Public Performance Rights Organizations for songwriters, like ASCAP and BMI (PRO) beat back an effort from the U.S. Department of Justice to forbid a long-standing song licensing practice that lets the music flow from collaborative songwriting teams. In the case United States v. Broadcast Music, Inc. 16-3830-cv, 2d. Cir. (Dec. 19, 2017), the court ruled against the U.S. DOJ Antitrust Division who had recently asserted that contrary to decades of industry practice, the anti-trust consent decree under which the PROs operate did not permit them to include in their blanket licenses any songs which they did not control 100%. This created a nightmare for joint songwriters whose collaborations spanned different PROs due to disparate PRO membership by the songwriters. The court concluded that if the DOJ wished to address the issue of “fractional licensing”, their recourse was limited to either amending the consent decree or suing under the Sherman Act.
December 29. 2017.
Wixen Music Publishing, Inc. sued Spotify in the Central District of California, (C.A.C.D. Case. No. 2:17-cv-09288-GW-GJS) alleging willful infringement of Wixen’s copyrights in its song catalog, which includes Tom Petty’s “Free Falling” and Survivor’s “Eye of the Tiger.” The complaint alleges that as a result of Spotify “outsourc[ing] its [licensing] responsibility” to the Harry Fox Agency, (HFA), it ended up using the compositions without a license because HFA was “ill-equipped to obtain all the necessary licenses.” Ironically, HFA is a long-time, music licensing agency for music publishers that manage compulsory licensing of “mechanical” (reproduction) rights in songs. It was owned by the National Music Publishers Association, sold to SESAC, another long-standing music rights organization, which itself was recently purchased by the Blackstone investment group. Wixen seeks $1.6 Billion in damages for willful infringement.