Pandora Media, Inc. v. American Society of Composers, Authors & Publisher Case Brief

Court of Appeals for the Second Circuit2015Docket #65661084
785 F.3d 73 114 U.S.P.Q. 2d (BNA) 1739 2015 U.S. App. LEXIS 7484 Antitrust Law Intellectual Property Contracts

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Case Brief Summary & Legal Analysis

4 min read

tl;dr: Music publishers attempted to selectively withdraw digital licensing rights from ASCAP to negotiate higher rates directly with Pandora. The court ruled this violated ASCAP’s antitrust consent decree, which requires offering its entire music catalog on an all-or-nothing basis to any licensee.

Legal Significance: This case affirms that an antitrust consent decree governing a performing rights organization (PRO) can mandate an all-or-nothing blanket license, preventing members from selectively withdrawing rights to circumvent the decree’s rate-setting mechanism and engage in price discrimination against certain users.

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Case Facts & Court Holding

Key Facts & Case Background

The American Society of Composers, Authors and Publishers (ASCAP), a performing rights organization (PRO), operates under a judicially administered antitrust consent decree (the “AFJ2”). The decree was implemented to curb ASCAP’s potential monopoly power and requires it to grant any requesting music user a non-exclusive license to perform “all of the works in the ASCAP repertory.” Seeking higher rates from new media companies, major music publishers like Sony and Universal attempted to partially withdraw their works from ASCAP. Specifically, they sought to revoke ASCAP’s authority to license their catalogs to digital services like Pandora, while allowing ASCAP to continue licensing the same works to traditional users like radio stations and restaurants. This would force Pandora to negotiate directly with the publishers outside the AFJ2’s rate court framework. Pandora, which had requested a blanket license from ASCAP for 2011-2015, challenged these partial withdrawals as a violation of the consent decree. The district court granted summary judgment for Pandora, finding the withdrawals invalid. It then conducted a trial to set a reasonable license fee.

Court Holding & Legal Precedent

Issue: Does the antitrust consent decree governing ASCAP permit its publisher members to partially withdraw public performance rights for specific categories of users, such as new media services, while leaving the rights for other users within the ASCAP repertory?

Affirmed. The plain language of the consent decree unambiguously precludes ASCAP from Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in volupt

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IRAC Legal Analysis

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Legal Issue

Does the antitrust consent decree governing ASCAP permit its publisher members to partially withdraw public performance rights for specific categories of users, such as new media services, while leaving the rights for other users within the ASCAP repertory?

Conclusion

The decision reinforces the structural power of an antitrust consent decree to Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dol

Legal Rule

Under the plain language of the Second Amended Final Judgment (AFJ2), ASCAP Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate veli

Legal Analysis

The court conducted a de novo review of the consent decree, interpreting Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.

Flash-to-Full Case Opinions

Flash Summary

  • The ASCAP consent decree prohibits music publishers from partially withdrawing licensing
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in volupt

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