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And the latest lawsuit? According to paperwork filed with the US District Court in New York, a consortium of local television broadcasters is suing performance rights group SESAC on charges of anti-competitive behavior. The class action asserts that SESAC is charging too much, using the dirty levers of 'price-fixing and other anti-competitive acts' to achieve its ends.
The consortium outlined a strategy that employs a combination of higher pricing demands and aggressive legal threats. "SESAC's strategy has been to sign up composers of music in popular television programs, guarantee them significantly higher incomes than they had received elsewhere, and then raise its prices without regard for the amount of music a station uses, employing threats of copyright infringement lawsuits as a bargaining tactic," the group alleges.
SESAC represents music featured in shows that include 'House,' 'Two and a Half Men,' 'Dr. Phil,' 'Ellen,' 'Entertainment Tonight,' and 'Seinfeld.' ASCAP and BMI are not part of the lawsuit, though the broadcasting group indicated that SESAC has not been subject to the same antitrust restraints as its larger competitors. SESAC has been contacted at its Nashville headquarters for comment.
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