Broadcasters challenge songwriters' price-setting power

Federal law gives copyright owners a legal monopoly over public performance of their works, among other uses. But their market power is supposed to be limited by the competition from other copyright owners. Consider the case of songwriters. Paul McCartney can make you pay for the privilege of including "Jet" in your movie, even if it's recorded by Shonen Knife instead of McCartney's Wings. But if you don't like what he charges, you can write your own material or go to another songwriter who demands less. Unless you can't go to someone else. That's the problem TV broadcasters face when they air syndicated programming. They're contractually bound to air the programs they buy with the music that's already in the soundtrack. As a result, they have zero leverage with songwriters when it comes to negotiating for the rights to broadcast those songs. A group of broadcasters has now gone to federal court in New York for help, filing a class-action antitrust lawsuit against SESAC, one of the three performing rights organizations representing songwriters and music publishers. The complaint was filed Wednesday afternoon by lawyers from Weil, Gotshal & Manges, and SESAC hasn't offered any comment yet. It singles out SESAC, the smallest of the performing rights groups (the others are ASCAP and BMI), for two reasons: SESAC's stable of composers includes many of the leading music writers for TV and commercials, and the other two rights groups' rates are already overseen by federal courts through longstanding consent decrees with the Justice Department.