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Broadcast Music v. CBS

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Citation Edit

Broadcast Music, Inc. v. Columbia Broadcasting System, Inc., 441 U.S. 1 (1979) (full-text).

U.S. Supreme Court Proceedings Edit

The U.S. Supreme Court held that the issuance of blanket licenses by BMI — arguably a horizontal restriction on price competition among rivals — was not a per se violation of Sherman Act §1, because the practice facially appeared "to 'increase economic efficiency and render markets more, rather than less, competitive.'"[1] The Court identified several efficiencies resulting from issuance of the licenses, including transaction, monitoring, and enforcement cost savings, before remanding the case for consideration under the "rule of reason" test.[2]

References Edit

  1. 441 U.S. at 20 (quoting United States v. United States Gypsum Co., 438 U.S. 422, 441 n.16 (1978)).
  2. Id. at 20-23.

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