Most Copyrighted Music Is Licensed for Use by BMI and ASCAP

question 38

Multiple Choice

Most copyrighted music is licensed for use by BMI and ASCAP (organizations that represent musicians, composers, and publishers of music) . They charge set fees to music users through "blanket licensing," which does not allow music users to bargain over price. This was attacked as price fixing. The Supreme Court held the practice:

• A) legal because the prices were "just and reasonable"
• B) legal because it involved copyrighted material not subject to the antitrust laws
• C) illegal under a rule of reason analysis, ruling that prices must be negotiated or that there must be many more price categories than before
• D) illegal under the per se rule against price fixing
• E) none of the other choices

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Definitions:

Legal Assent

A promise to buy or sell that the courts will require that the parties obey.

Mutual Mistake

The result of an error by both parties about a material fact, i.e., one that is important in the context of a particular contract.

Fraudulent Misrepresentation

The act of intentionally making false statements to induce another party to enter into a contract, resulting in harm or damage.

Intentional Misrepresentation

Deliberate false statement by one party aimed at getting another party to enter into an agreement.