Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Television stations reach tentative settlement of monopoly claims against performance rights licensing agency, (Sep 17, 2014)

By Linda O’Brien, J.D., LL.M.

A group of television stations has tentatively reached a settlement in their antitrust suit against performance rights licensing agency, SESAC, for allegedly conspiring to monopolize its repertory of copyrighted music, according to a letter filed in the federal district court of New York City (Meredith Corporation v. SESAC LLC, September 15, 2014).

SESAC LLC is one of the three largest performing rights organizations (PROs) that issue blanket licenses to the rights to perform the copyrighted music of its members or affiliates. Local television stations—Meredith Corporation, The E.W. Scripps Company, Scripps Media, Inc., Hoak Media, LLC, Hoak Media of Nebraska LLC, and Hoak Media of Dakota, LLC—filed a class action suit against SESAC, alleging that SESAC’s licensing practices unlawfully restrain trade and that SESAC has conspired to monopolize the market for the performance rights to musical works within its repertory in violation of Sections 1 and 2 of the Sherman Act. In March 2014, the court denied SESACs’ motion for summary judgment.

The parties represented to the court that they have reached an agreement in principle for the settlement of all claims in the action and expect to present a class action settlement for preliminary approval on October 15, 2014.

The case is No. 09 Civ. 9177-PAE.

Attorneys: Steven A. Reiss (Weil, Gotshal & Manges LLP) for Meredith Corporation, The E.W. Scripps Company, Scripps Media, Inc., Hoak Media, LLC, Hoak Media of Newbraska LLC, and Hoak Media of Dakota, LLC. Gregory P. Joseph (Joseph Hage Aaronson LLC) for SESAC LLC.

Companies: Meredith Corporation; The E.W. Scripps Company; Scripps Media, Inc.; Hoak Media, LLC; Hoak Media of Newbraska LLC; Hoak Media of Dakota, LLC; SESAC LLC.

News: Antitrust NewYorkNews