License Fees Gave DMX Unfair Edge, PROs Tell 2nd Circ.

Law360, New York (June 16, 2011, 8:27 PM EDT) -- Performing rights organizations told the Second Circuit on Thursday that adjustable fee blanket licenses won by DMX Inc. in 2010 gave the background music provider an unfair market advantage and did not adequately reimburse artists the organizations represent.

Broadcast Music Inc. and the American Society of Composers, Authors and Publishers said that an alternative blanket license structure they were seeking provided an appropriate benchmark because blanket fees were a standard licensing model used by the majority of DMX’s competitors.

In response, DMX contended that the organizations...
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