Radio Industry Files SESAC Anti-Trust Complaint

[recto101]

http://news.****************/cgi-bin/rol.exe/headline_id=n25687

The Radio Music License Committee (RMLC) has filed an antitrust complaint against SESAC charging anti-competitive behavior that it says allows SESAC to charge the U.S. commercial radio industry "monopoly prices" to air musical works in its repertory. RMLC is an industry group that has traditionally represented several thousand commercial radio outlets in music license matters with ASCAP and BMI.

The filing of the SESAC complaint comes on the heels of the RMLC's recent settlements of longstanding litigations with both ASCAP and BMI. SESAC, a public-performance-right licensing agency, is distinguished from ASCAP and BMI in that it is a privately-held, for-profit firm. Unlike SESAC, the committee says, ASCAP and BMI are subject to consent decrees established with the Department of Justice, which prevent monopoly pricing. So far, RMLC notes, SESAC has managed to avoid similar limits on pricing.

The RMLC complaint follows the class action antitrust lawsuit that the local television industry filed against SESAC in late 2009, which is still pending, following the Federal District Court's decision to deny SESAC's motion to dismiss. The RMLC complaint alleges that SESAC is a per se illegal cartel that has eliminated all competition between its affiliates and that has created a monopoly over the works in its repertory.

RMLC is seeking injunctive relief, requiring, among other things, that SESAC submit to a judicial rate-making procedure comparable to what the consent decrees governing ASCAP and BMI impose. The complaint was filed in the U.S. District Court for the Eastern District of Pennsylvania. (10-12-12)

 

[DavidKaye]

Then there was the radio station where SESAC tried to levy royalties. The owner took the SESAC rep into the record library, asked which songs belonged to SESAC and then proceeded to break every SESAC record.

 

[TheBigA]

The thing about this is that SESAC has the most to gain by negotiating with the entire industry. Why? Because a lot of stations I know choose not to pay the individual license fee to a PRO that represents such a small number of a songs. The stations would rather not play the songs. And that's what a lot of stations do. But then somehow a song is accidently played on that station, either through syndication or some outside promotion, and SESAC goes after the station for royalties. It's dumb. The RMLC has done a great job negotiating for the radio industry with BMI and ASCAP. Why not SESAC?

Having said that, I don't see how SESAC is operating as a monopoly. Radio stations have alternatives to the songs represented by SESAC, and they could simply choose not to play them. On the other hand, it is my view that MusicFirst is operating as a regulated monopoly in its negotiations for digital royalties. Broadcasters have no choice but to pay MusicFirst for any music played on digital platforms.

 

[radiocph]

Can anyone name any well-known SESAC pop songs off the top of their head? (No Googling!)

I guess there are not too many. If ASCAP is Hertz and BMI is Avis, then SESAC is, I don't know, Rent-A-Wreck maybe?

 

[TheBigA]

Can anyone name any well-known SESAC pop songs off the top of their head? (No Googling!)

The one that comes to mind is Need You Now by Lady Antebellum. Hillary Scott is covered by SESAC.