In a win for Broadcast Music Inc. and the American Society of Composers, Authors and Publishers (ASCAP), a federal judge has shot down a recent determination from the U.S. Department of Justice that these performance rights organizations can’t engage in so-called fractional licensing, which is crucial to their business model.
Over 70 years ago, the DOJ brought civil suits against ASCAP and BMI, alleging violations of antitrust law. As a result, both agencies entered into consent decrees with the government. These consent decrees, originally entered into in 1941, aimed to address the competitive concerns arising from the market power each organization had.
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