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Antitrust Case Against RIAA Reinstated

NewYorkCountryLawyer writes "After Starr v. SONY BMG Music Entertainment was dismissed at the District Court level, the antitrust class action against the RIAA has been reinstated by the US Court of Appeals for the Second Circuit. In its 25-page opinion (PDF), the Appeals court held the following allegations sufficiently allege antitrust violations: 'First, defendants agreed to launch MusicNet and pressplay, both of which charged unreasonably high prices and contained similar DRMs. Second, none of the defendants dramatically reduced their prices for Internet Music (as compared to CDs), despite the fact that all defendants experienced dramatic cost reductions in producing Internet Music. Third, when defendants began to sell Internet Music through entities they did not own or control, they maintained the same unreasonably high prices and DRMs as MusicNet itself. Fourth, defendants used MFNs [most favored nation clauses] in their licenses that had the effect of guaranteeing that the licensor who signed the MFN received terms no less favorable than terms offered to other licensors. For example, both EMI and UMG used MFN clauses in their licensing agreements with MusicNet. Fifth, defendants used the MFNs to enforce a wholesale price floor of about 70 cents per song. Sixth, all defendants refuse to do business with eMusic, the #2 Internet Music retailer. Seventh, in or about May 2005, all defendants raised wholesale prices from about $0.65 per song to $0.70 per song. This price increase was enforced by MFNs.'"

3 of 163 comments (clear)

  1. Re:What about my stress level by Kierthos · · Score: 1, Flamebait

    Well, there is a difference between "share your toys" wherein the act of sharing does not create an exact duplicate of the toys and "share your digital music" where the act of sharing does create an exact digital duplicate.

    Honestly, people.

    --
    Mr. Hu is not a ninja.
  2. Re:What about my stress level by flatrock · · Score: 0, Flamebait

    Wether you are 5 or 25 sharing things that are yours is nice, sharing things that belong to others is not.

    If another kid lets you play with his toy in kindergarden you don't give that toy to a third kid and say they can do whatever they want with it.

    When you "buy" music you are buying a license to use that music in a limited fashion. The person who owns the rights to the music is the real owner, you more or less have it on loan under specific circumstances.

    That's the nature of copyright.

  3. Re:What about my stress level by BobMcD · · Score: 1, Flamebait

    Sharing your own toys is not evil. "Sharing" toys that belong to someone else is. Particularly when you have agreed not to do it.

    The rest is detail.