Most Copyrighted Music Is Licensed for Use by BMI and ASCAP

question 25

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 using a rule of reason analysis because otherwise the market could not function well
• 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:

Business Production

Activities involved in the creation of goods and services to meet consumer demand.

Employment

The state of having paid work, where an individual offers their skills and labor in exchange for compensation.

Aggregate Supply Curve

A graph that shows the relationship between the overall price level in an economy and the total output produced by firms at different price levels.

Resource Costs

Expenses associated with the acquisition of resources needed for production, including materials, labor, and capital.