White, joined by Burger, Brennan, Stewart, Marshall, Blackmun, Powell, Rehnquist
Dissent
Stevens
Broadcast Music Inc. v. Columbia Broadcasting System Inc., 441 U.S. 1 (1979), was an important
antitrust case decided by the
Supreme Court of the United States.[1] It examined a complaint brought by
CBS affiliates that the method in which broadcast companies determine fees for the issuance of blanket licenses (the permission to use a set of copyrighted media materials) was a violation of the
Sherman Antitrust Act. The Supreme Court ruled that the issuance of blanket licenses was not a violation of the act, holding that the nature of blanket licenses did not arise to
price fixing.
Background
The TV network
CBS (also, at the time, owner of
Columbia Records) filed an
antitrust suit against licensing agencies alleging that the system by which these agencies received fees for the issuance of blanket licenses to perform copyrighted musical compositions amounted to illegal
price fixing.
The basic question in the case is "whether the issuance by ASCAP and BMI to CBS of blanket licenses to copyrighted musical compositions at fees negotiated by them is price fixing per se unlawful under the antitrust laws."
Judgment
The Supreme Court held that blanket licenses issued by
ASCAP and
BMI did not necessarily constitute
price fixing. The judgment, delivered by White J, was unanimous in holding that such practice should instead be examined under the rule of reason to determine if it is unlawful. Stevens J agreed with the majority, but would not have remanded the case to the lower courts for rehearing. He would have held that the blanket license were a breach of s1 of the Sherman Act using the rule of reason.[2]
This section needs expansion. You can help by
adding to it. (April 2013)
Significance
The case was part of the court's retreat from applying rigid per se rules in antitrust to a more permissive
rule of reason.[3]
White, joined by Burger, Brennan, Stewart, Marshall, Blackmun, Powell, Rehnquist
Dissent
Stevens
Broadcast Music Inc. v. Columbia Broadcasting System Inc., 441 U.S. 1 (1979), was an important
antitrust case decided by the
Supreme Court of the United States.[1] It examined a complaint brought by
CBS affiliates that the method in which broadcast companies determine fees for the issuance of blanket licenses (the permission to use a set of copyrighted media materials) was a violation of the
Sherman Antitrust Act. The Supreme Court ruled that the issuance of blanket licenses was not a violation of the act, holding that the nature of blanket licenses did not arise to
price fixing.
Background
The TV network
CBS (also, at the time, owner of
Columbia Records) filed an
antitrust suit against licensing agencies alleging that the system by which these agencies received fees for the issuance of blanket licenses to perform copyrighted musical compositions amounted to illegal
price fixing.
The basic question in the case is "whether the issuance by ASCAP and BMI to CBS of blanket licenses to copyrighted musical compositions at fees negotiated by them is price fixing per se unlawful under the antitrust laws."
Judgment
The Supreme Court held that blanket licenses issued by
ASCAP and
BMI did not necessarily constitute
price fixing. The judgment, delivered by White J, was unanimous in holding that such practice should instead be examined under the rule of reason to determine if it is unlawful. Stevens J agreed with the majority, but would not have remanded the case to the lower courts for rehearing. He would have held that the blanket license were a breach of s1 of the Sherman Act using the rule of reason.[2]
This section needs expansion. You can help by
adding to it. (April 2013)
Significance
The case was part of the court's retreat from applying rigid per se rules in antitrust to a more permissive
rule of reason.[3]