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Copyright Cartels or Legitimate Joint Ventures? What the MusicNet and Pressplay Litigation Means for the Entertainment Industry's New Distribution Models
Published Web Location
https://doi.org/10.5070/LR8192027157Abstract
Starr v. Sony BMG Music Entertainment illustrates the inherent
tension between copyright holders seeking to enforce their exclusive
rights and antitrust doctrine. In Starr, competing record labels pooled
their copyrights into digital distribution joint ventures, MusicNet and
Pressplay. Such collaboration toes a thin line between cartel-like
conduct and joint venture legitimacy. Competitors in the entertainment
industry have often collaborated to protect their copyrights. While
some of these joint ventures have survived antitrust scrutiny, others
have not. The result is often guided by the choice of antitrust standard
of review: per se or rule of reason.
The current MusicNet/Pressplay litigation demonstrates how the
fundamental tenets of competition law become muddied when
intellectual property owners attempt to use their monopolies to control
new online distribution models. After examining how the choice of
antitrust standard will impact the MusicNet/Pressplay litigation, this
Comment considers how current digital joint ventures between content
owners, Vevo, Hulu and Ultraviolet, would be analyzed under antitrust
doctrine. Despite the record labels' apparent anti-competitive conduct
in MusicNet/Pressplay, the conflicting statutory policies of copyright
and antitrust law, and lack ofjudicial scrutiny in this area suggests the
rule of reason would be more appropriate.
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