Global Music Rights Seeks to Dismiss RMLC Antitrust Lawsuit
Global Music Rights filed a motion in U.S. District Court in Philadelphia seeking to dismiss the Radio Music License Committee's antitrust lawsuit against the performing rights organization or to transfer the venue. RMLC sued in November (see 1611210011), claiming GMR…
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was seeking “monopoly” licensing rates from member terrestrial radio stations that are about three times the fees paid by the American Society of Composers, Authors and Publishers and Broadcast Music Inc. GMR subsequently sued RMLC in U.S. District Court in Los Angeles on antitrust claims (see 1612090062). The entities reached a temporary licensing agreement in late December that didn't end their suits (see 1612270052). GMR said in Friday's motion (in Pacer) that the Philadelphia court is an improper forum for litigating RMLC's claims, and also doesn't have “personal jurisdiction” over the Los Angeles-based PRO. RMLC's claim fails to include any “direct evidence” of “actual prices” to back up its claim about GMR's market power, the PRO said. “This defect is critical, since market power is the ability to 'control prices' without forfeiting market share,” GMR said. “RMLC has not alleged that GMR controls market prices, much less that it could profitably do so.” RMLC's claims rest only on licensing offers “that GMR allegedly made in the course of unsuccessful negotiations,” the PRO said. “Market power cannot be inferred from price demands that were rejected.” RMLC's pursuit of a rate court process for GMR's licensing prices “would stifle competition, neutralize GMR as a competitor in the music licensing market, rewrite the Copyright Act, and usurp the legislative prerogative of Congress, since the Copyright Act expressly does not require a compulsory license or rate for public performance licenses of compositions,” GMR said. RMLC didn't comment Monday.