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And both sides are claiming a win after the ruling. Federal Judge Terry Hatter (Central District of California) has denied the RMLC’s attempt to dismiss its case against GMR, which GMR says is a major blow to the radio industry. But the RMLC says the big news here is that the court agreed that if RMLC can prove the facts alleged—which everyone knows are true—then GMR is an illegal cartel.
GMR claims the ruling clears the way for GMR to challenge the way radio deals with songwriters. GMR calls radio a powerful cartel that has perpetuating unfair licensing practices against songwriters for decades..
The RMLC says that GMR’s entire reason for being is to raise the price of pre-existing music licenses, through what the antitrust laws call “concerted action.” “The court appropriately recognized that such conduct is indefensible as a matter of law.”