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United States v. Broadcast Music, Inc.

Citations: 207 F. Supp. 3d 374; 2016 WL 4989938Docket: 64 Civ. 3787 (LLS)

Court: District Court, S.D. New York; September 16, 2016; Federal District Court

Narrative Opinion Summary

This case involves an interpretation of the Final Judgment and Consent Decree concerning ASCAP and BMI, two major performing rights organizations (PROs). The crux of the dispute revolves around whether these decrees mandate full-work licensing, as asserted by a 2016 Department of Justice (DOJ) statement. The DOJ's interpretation suggests that ASCAP and BMI are required to offer licenses that cover entire works, rather than fractional interests, to maximize the procompetitive benefits of blanket licenses. The Second Circuit previously held that ASCAP must license its entire repertory, a ruling extended to BMI in this decision. BMI sought a declaratory judgment that the Consent Decree does not require full-work licensing, but the court ruled against BMI, affirming the necessity of full-work licenses under the Consent Decrees. The court further clarified that the decrees do not specify the nature of licensing rights or address the validity of copyrights within BMI's repertory. Additionally, the decrees mandate BMI to offer licenses without discrimination. The opinion concludes with procedural guidance for lodging an appeal, including deadlines, required documentation, and fee details. Ultimately, the court's decision supports the DOJ's position on full-work licensing, emphasizing its importance for ensuring efficient access to music under ASCAP and BMI's control.

Legal Issues Addressed

Appeal Process and Requirements

Application: The document provides detailed instructions for filing a notice of appeal, including the timeframe, content, and fees, as well as steps for appealing in forma pauperis.

Reasoning: If unable to file a notice of appeal within the required timeframe, a motion for extension can be made within 60 days of the judgment entry, or 90 days if the United States or its agency is involved.

Consent Decree Scope Regarding Licensing Rights

Application: The opinion clarified that the Consent Decree does not specify the nature of BMI's licensing rights or cover potential licensing of compositions without proper legal rights.

Reasoning: The excerpt outlines critical limitations of the Consent Decree regarding the licensing and copyright issues related to BMI's repertory. It clarifies that the Consent Decree does not address potential licensing of compositions without proper legal rights or invalid copyrights.

Full-Work Licensing Requirement under Consent Decrees

Application: The court determined that the Consent Decrees mandate that ASCAP and BMI must offer full-work licenses, allowing users to perform any work in their repertory without needing additional licenses for fractional interests.

Reasoning: The court emphasized that the consent decrees necessitate full-work licensing, and while copyright holders can impose limitations on their works, such limitations could preclude ASCAP and BMI from including those works in their blanket licenses.

Non-Discrimination Mandate in Licensing

Application: BMI is required under the Consent Decree to offer licenses for all compositions in its repertory without discrimination among applicants.

Reasoning: The excerpt also highlights that the Consent Decree mandates BMI to offer licenses for all compositions in its repertory without discrimination among applicants.