United States v. American Society of Composers, Authors and Publishers (In re Fox Broadcasting)

870 F. Supp. 1211 (1995)

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United States v. American Society of Composers, Authors and Publishers (In re Fox Broadcasting)

United States District Court for the Southern District of New York
870 F. Supp. 1211 (1995)

SH

Facts

Formed in 1986, Fox Broadcasting Co. (Fox) was a corporation that acquired and distributed television programming via satellite transmission to affiliated and owned and operated (affiliates) local television stations. The American Society of Composers, Authors and Publishers (ASCAP) was an incorporated membership association of composers, authors, and publishers of music that held nonexclusive licenses for the performing rights to their musical compositions. ASCAP served as a licensing agent and as a collector and distributor of compensation. ASCAP had blanket licensing arrangements with the three networks (ABC, NBC, and CBS) and a blanket licensing arrangement with a group of local stations, including Fox’s affiliates, who apportioned the total blanket license fee among themselves. As Fox grew, ASCAP argued Fox had become a network and sought to license Fox as it did ABC, NBC, and CBS. Fox argued it did not need to enter into a blanket licensing arrangement with ASCAP because its affiliates had licensed the programming at the local level. According to Fox, ASCAP was seeking to be paid twice for the same broadcast. When ASCAP threatened to file suit, Fox initiated proceedings, seeking a declaration that it was not required to obtain a blanket license from ASCAP for the satellite transmission of its programming to its affiliates.

Rule of Law

Issue

Holding and Reasoning (Conner, J.)

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