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Antitrust Case Against RIAA Reinstated

Posted by kdawson on from the collusion-and-restraint dept.

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.'"

4 of 163 comments (clear)

  1. Re:Thanks again NYCL by unixfan · · Score: 5, Informative

    At one point they also lobbied to get a law that would allow them to hack your computer and wipe out the content if they suspected you of having illegal music. Fortunately Congress did not agree.

  2. Re:What about my stress level by Quantumstate · · Score: 5, Informative

    "This video contains content from Vevo, who has decided to block it in your country. "

  3. Re:RIAA has stopped Sueing by rootofevil · · Score: 5, Informative

    i think the point is that 1) all the record companies set the same price and 2) they all raised their prices together. these two facts seem to demonstrate collusion in the market. that being the case or not is up to the courts.

    --
    turn up the jukebox and tell me a lie
  4. Re:Thanks again NYCL by Anonymous Coward · · Score: 5, Informative

    http://www.wired.com/politics/law/news/2001/10/47552

    1st hit on google "RIAA wants to hack computers". Stop being so lazy :p