Monopolization Claim Against SESAC Not Subject To Dismissal

Radio Music License Committee, Inc. v. SESAC, Inc. , No. 2:12-cv-5807 (E.D. Pa. June 26, 2014).

Plaintiff sued the public performance rights organization SESAC, seeking declaratory and injunctive relief on behalf of its member radio stations under §1 and §2 of the Sherman Antitrust Act (15 U.S.C. §§1 & 2) and §16 of the Clayton Act (15 U.S.C. §26).  Plaintiff alleged three counts: horizontal price fixing, group boycott/refusal to deal, and monopolization.  The Court granted SESAC's motion to dismiss the price fixing and refusal to deal claims, but denied the motion as to plaintiff's monopolization claim.  With respect to monopolization, the Court found: "The hallmark of anticompetitive conduct is harm to competition, but the danger of anticompetitive conduct is harm to the consumer.  The most common characteristics of unlawful monopolies are price increases, output decreases, and a deterioration in quality and service, all of which the antitrust laws seek to minimize.  That is precisely what plaintiff has alleged here. SESAC’s anticompetitive conduct has driven up the price of copyright licenses and deteriorated the quality of service insofar as customers only have the option of purchasing a blanket license. The court believes that plaintiff has alleged a plausible claim for which relief can be granted under §2 of the Sherman Act."