broadcast music cbs argued january decided april together american society composers authors publishers et al columbia broadcasting system et also certiorari respondent columbia broadcasting system cbs brought action petitioners american society composers authors publishers ascap broadcast music bmi members affiliates alleging inter alia issuance ascap bmi cbs blanket licenses copyrighted musical compositions fees negotiated illegal price fixing antitrust laws blanket licenses give licensees right perform compositions owned members affiliates often licensees desire stated term fees blanket licenses ordinarily percentage total revenues flat dollar amount directly depend amount type music used trial limited issue liability district dismissed complaint holding inter alia blanket license price fixing per se violation sherman act appeals reversed remanded consideration appropriate remedy holding blanket license issued television networks form price fixing illegal per se sherman act established copyright misuse held issuance ascap bmi blanket licenses constitute price fixing per se unlawful antitrust laws pp considerable experience certain business relationships courts classify per se violations sherman act topco associates though rather intensive antitrust scrutiny ascap bmi blanket licenses experience hardly counsels outlaw blanket license per se restraint trade furthermore amicus brief present case urges blanket licenses consent decrees earlier actions government authorize ascap bmi issue television networks per se violations sherman act congress copyright act chosen employ blanket license similar practices thus nearly universal view blanket licenses form price fixing subject automatic condemnation sherman act rather careful assessment rule reason generally applied sherman act cases pp characterizing conduct issuing blanket licenses per se rule inquiry must focus whether effect tends show effect purpose practice threaten proper operation predominantly economy blanket license naked restrain trade purpose except stifling competition white motor rather accompanies integration sales monitoring enforcement unauthorized copyright use difficult expensive problems left individual users copyright owners although blanket license fee set ascap bmi rather competition among individual copyright owners although fee use compositions covered license license wholly equated simple horizontal arrangement among competitors quite different anything individual owner issue light background plainly indicates years face available alternatives including direct negotiation individual copyright owners blanket license provided acceptable mechanism least large part market performing rights copyrighted musical compositions automatically declared illegal many manifestations rather subjected discriminating examination rule reason pp appeals judgment holding licensing practices ascap bmi per se violations sherman act copyright misuse judgment dependent thereon reversed case remanded proceedings consider unresolved issues cbs may properly brought appeals including assessment rule reason blanket license employed television industry pp white delivered opinion burger brennan stewart marshall blackmun powell rehnquist joined stevens filed dissenting opinion post amalya kearse argued cause petitioners briefs george davidson conley brian jay topkis argued cause petitioners briefs bernard korman simon rifkind herman finkelstein allan blumstein alan hruska argued cause respondents cases briefs john appel robert sondak deputy solicitor general easterbrook argued cause amicus curiae urging reversal briefs solicitor general mccree assistant attorney general shenefield william alsup john powers iii andrea fn briefs amici curiae urging reversal filed irwin karp authors league america philip elman robert lichtman performing right society et al robert bork aaron copland et al briefs amici curiae urging affirmance filed ira millstein television music license committee clarence fried american broadcasting companies david hyde national broadcasting company john midlen national religious broadcasters john hill attorney general texas david kendall first assistant attorney general robert bickerstaff susan dasher assistant attorneys general universities state texas et al irving moskovitz filed brief radio music license committee amicus curiae justice white delivered opinion case involves action antitrust copyright laws brought respondent columbia broadcasting system cbs petitioners american society composers authors publishers ascap broadcast music bmi members affiliates basic question presented whether issuance ascap bmi cbs blanket licenses copyrighted musical compositions fees negotiated price fixing per se unlawful antitrust laws cbs operates one three national commercial television networks supplying programs approximately affiliated stations telecasting approximately network programs per year many programs make use copyrighted music recorded soundtrack cbs also owns television radio stations various cities giant world use music rights outlet history entertainment since copyright laws vested owner copyrighted musical composition exclusive right perform work publicly profit legal right victor herbert handful composers organized ascap performed copyrighted music profit numerous widespread performances fleeting practical matter impossible many individual copyright owners negotiate license users detect unauthorized uses ascap organized clearinghouse copyright owners users solve problems associated licensing music supp sdny ascap operates today members grant nonexclusive rights license nondramatic performances works ascap issues licenses distributes royalties copyright owners accordance schedule reflecting nature amount use music factors bmi nonprofit corporation owned members broadcasting industry organized affiliated represents publishing companies authors composers operates much manner ascap almost every domestic copyrighted composition repertory either ascap total three million compositions bmi one million organizations operate primarily blanket licenses give licensees right perform compositions owned members affiliates often licensees desire stated term fees blanket licenses ordinarily percentage total revenues flat dollar amount directly depend amount type music used radio television broadcasters largest users music almost hold blanket licenses ascap bmi litigation cbs held blanket licenses organizations television network continuous basis since late never attempted secure form license either ascap members complaint filed cbs charged various violations sherman act copyright laws cbs argued ascap bmi unlawful monopolies blanket license illegal price fixing unlawful tying arrangement concerted refusal deal misuse copyrights district though denying summary judgment certain defendants ruled practice fall within per se rule supp sdny trial limited issue liability dismissed complaint rejecting claim blanket license price fixing per se violation sherman act holding since direct negotiation individual copyright owners available feasible undue restraint trade illegal tying misuse copyrights monopolization though agreeing district factfinding disturbing legal conclusions antitrust theories liability appeals held blanket license issued television networks form price fixing illegal per se sherman act conclusion without settled issue liability sherman act established copyright misuse required reversal district judgment well remand consider appropriate remedy ascap bmi petitioned certiorari presenting questions applicability per se rule whether constitutes misuse copyrights cbs cross petition challenge failure sustain antitrust claims granted certiorari importance issues antitrust copyright laws disagree appeals conclusions respect per se illegality blanket license reverse judgment remand cause appropriate proceedings ii construing applying sherman act ban contracts conspiracies combinations restraint trade held certain agreements practices plainly anticompetitive national society professional engineers continental gte sylvania often lack redeeming virtue northern pac conclusively presumed illegal without examination rule reason generally applied sherman act cases per se rule valid useful tool antitrust policy enforcement agreements among competitors fix prices individual goods services among concerted activities held within per se category easy labels always supply ready answers appeals cbs blanket license involves price fixing literal sense composers publishing houses joined together organization sets price blanket license sells question simply determining whether two potential competitors literally fixed price generally used antitrust field price fixing shorthand way describing certain categories business behavior per se rule held applicable appeals literal approach alone establish particular practice one types plainly anticompetitive likely without redeeming virtue literalness overly simplistic often overbroad two partners set price goods services literally price fixing per se violation sherman act see addyston pipe steel aff thus necessary characterize challenged conduct falling within without category behavior apply label per se price fixing often always simple matter consequently recognized topco associates considerable experience certain business relationships courts classify per se violations see white motor never examined practice like one indeed appeals recognized dealing performing rights music industry confront conditions copyright law antitrust law sui generis though rather intensive antitrust scrutiny ascap blanket licenses experience hardly counsels outlaw blanket license per se restraint trade litigation cases involving ascap licensing practices arisen efforts creators copyrighted musical compositions collect public performance works entitled copyright act already indicated ascap bmi originated make possible facilitate dealings copyright owners desire use music organizations plainly involve concerted action large active line commerce surprising district found either ascap bmi stranger antitrust litigation department justice first investigated allegations anticompetitive conduct ascap years ago criminal complaint filed government granted midtrial continuance never returned courtroom separate complaints charged blanket license license offered ascap bmi illegal restraint trade arbitrary prices charged result illegal copyright pool government sought enjoin ascap exclusive licensing powers require different form licensing organization case settled consent decree imposed tight restrictions ascap operations following complaints relating television industry successful private litigation ascap movie theaters government challenge ascap arrangements similar foreign organizations decree reopened extensively amended amended decree still substantially controls activities ascap members may grant ascap nonexclusive rights license works public performance members therefore retain rights individually license public performances along rights license use compositions purposes ascap forbidden grant license perform one specified compositions ascap repertory unless user owner requested writing ascap required grant user making written application nonexclusive license perform ascap compositions either period time basis ascap may insist blanket license fee license based revenues program ascap music played must offer applicant genuine economic choice license common blanket license ascap putative licensee unable agree fee within days applicant may apply district determination reasonable fee ascap burden proving reasonableness decree amended time time continues effect blanket license continues primary instrument ascap conducts business decree courts twice construed decree require ascap issue licenses selected portions repertory also remains true decree guarantees legal availability direct licensing performance rights ascap members district found respect appeals agreed practical impediments preventing direct dealing television networks desire historically done since cbs television networks taken blanket licenses ascap bmi suit arose cbs network demanded kind license course consent judgment even one entered behest antitrust division immunize defendant liability actions including contemplated decree violate rights nonparties see sam fox publishing involved decree ignored federal executive judiciary carefully scrutinized ascap challenged conduct imposed restrictions various ascap practices terms decree stand ready provide consideration supervision perhaps invalidation asserted anticompetitive practices circumstances unique indicator challenged practice may redeeming competitive virtues search values almost sure vain thus although cbs bound antitrust division actions decree fact economic legal life industry appeals ignored completely analyzing practice see fact alone might remove naked scheme ambit per se rule discussed infra part iii uncertain whether practice face effect spurred purpose restraining competition among individual composers consent decrees legality blanket license challenged suits brought certain ascap members individual radio stations copyright infringement stations raised defense blanket license form price fixing illegal sherman act parties stipulated nearly impossible radio station negotiate copyright holder separate licenses performance works radio background relying heavily consent judgment appeals ninth circuit rejected claims ascap combination restraint trade blanket license constituted illegal price fixing gershwin publishing cert denied department justice principal responsibility enforcing sherman act administering consent decrees relevant case agreed result reached ninth circuit submission amicus curiae opposing one station petition certiorari department stated must kind central licensing agency copyright holders may offer works common pool wish use memorandum amicus curiae pet cert gershwin publishing pp department elaborated thought fact meant proper application antitrust laws area sherman act always discriminatingly applied light economic realities situations competitors permitted form joint selling agencies pooled activities subject strict limitations antitrust laws guarantee abuse collective power thus created associated press louis terminal appalachian coals chicago board trade case appears us involve situation extraordinary number users spread across land ease performance may broadcast sheer volume copyrighted compositions enormous quantity separate performances year impracticability negotiating individual licenses composition ephemeral nature performance combine create unique market conditions performance rights recorded music omitted evidenced amicus brief present case department remains view furthermore disagrees appeals case urges blanket licenses consent decree authorizes ascap issue television networks per se violations sherman act takes position however whether practice unreasonable restraint trade context network television industry finally note congress new copyright act chosen employ blanket license similar practices congress created compulsory blanket license secondary transmissions cable television systems provided otwithstanding provisions antitrust laws claimants may agree among proportionate division compulsory licensing fees among may lump claims together file jointly single claim may designate common agent receive payment behalf app newly created compulsory license use copyrighted compositions jukeboxes also blanket license payable societies ascap unless individual copyright holder prove entitlement share moreover requiring noncommercial broadcasters pay use copyrighted music congress provided otwithstanding provision antitrust laws copyright owners may designate common agents negotiate agree pay receive payments though provisions directly controlling reflect opinion blanket license ascap economically beneficial least circumstances district cases holding various ascap practices including licensing practices violative sherman act even nearly universal view either blanket licenses issued ascap prices negotiated form price fixing subject automatic condemnation sherman act rather careful assessment rule reason iii course bound cbs views department justice results prior lower cases opinions various experts merits blanket license must independently examine practice factors caution us easily finding blanket licensing subject per se invalidation preliminary matter mindful appeals holding appear quite difficult contain held per se antitrust violation whenever ascap issues blanket license television network single fee also automatically illegal ascap negotiate issue blanket licenses individual radio television stations users perform copyrighted music profit likewise present network licenses issued ascap behalf members per se violations equally illegal members authorize ascap issue licenses establishing various categories uses network might copyrighted music setting standard fee described use although appeals apparently thought blanket license saved even many applications seems us per se rule accommodate flexibility observations appeals respect remedy tend impeach per se basis holding liability cbs prefer ascap authorized indeed directed make compositions available standard rates within negotiated categories use conjunction blanket licensing constitutes illegal price fixing copyright owners cbs urges injunction issue forbidding ascap issue blanket license negotiate fee except behalf individual member use copyrighted work works thus called upon determine blanket licensing unlawful across board quite sure however per se rule require holding first place line commerce allegedly restrained performing rights copyrighted music exists copyright laws use copyrighted music public performances must secure consent copyright owner liable least statutory damages infringement conduct willful purpose financial gain criminal penalties furthermore nothing copyright act indicates slightest congress intended weaken rights copyright owners control public performance musical compositions quite contrary true although copyright laws confer rights copyright owners fix prices among otherwise violate antitrust laws expect market arrangements reasonably necessary effectuate rights granted deemed per se violation sherman act otherwise commerce anticipated copyright act protected restraint sherman act exist exist pale reminder congress envisioned generally characterizing conduct per se rule inquiry must focus whether effect tends show effect see gypsum purpose practice threaten proper operation predominantly economy whether practice facially appears one always almost always tend restrict competition decrease output portion market instead one designed increase economic efficiency render markets rather less competitive see national society professional engineers continental gte sylvania northern pac blanket license see naked restrain trade purpose except stifling competition white motor rather accompanies integration sales monitoring enforcement unauthorized copyright use see sullivan handbook law antitrust already indicated ascap blanket license developed together practical situation marketplace thousands users thousands copyright owners millions compositions users want unplanned rapid indemnified access repertory compositions owners want reliable method collecting use copyrights individual sales transactions industry quite expensive individual monitoring enforcement especially light resources single composers indeed appeals cbs recognize costs prohibitive licenses individual radio stations nightclubs restaurants milieu blanket license arose middleman blanket license obvious necessity thousands individual negotiations virtual impossibility avoided also individual fees use individual compositions presuppose intricate schedule fees uses well difficult expensive reporting problem user policing task copyright owner historically market rights organized largely around blanket license gave unlimited access repertory reliable protection infringement ascap major competitor bmi came scene also turned blanket license advent radio television networks market conditions changed necessity advantages blanket license users may far less obvious case potential users individual television radio stations thousands individuals organizations performing copyrighted compositions public even television network licenses ascap reduces costs absolutely creating blanket license sold instead thousands times obviates need closely monitoring networks see use pay ascap also provides necessary resources blanket sales enforcement resources unavailable vast majority composers publishing houses moreover bulk license type necessary consequence integration necessary achieve efficiencies necessary consequence aggregate license price must established substantial lowering costs course potentially beneficial sellers buyers differentiates blanket license individual use licenses blanket license composed individual compositions plus aggregating service whole truly greater sum parts extent different product blanket license certain unique characteristics allows licensee immediate use covered compositions without delay prior individual negotiations great flexibility choice musical material many consumers clearly prefer characteristics cost advantages marketable package even small societies occasionally arisen compete ascap bmi offered blanket licenses thus extent blanket license different product ascap really joint sales agency offering individual goods many sellers separate seller offering blanket license individual compositions raw material ascap short made market individual composers inherently unable compete fully effectively finally doubt enough counsel application per se rule extent practice threatens central nervous system economy oil competitive pricing free market means allocating resources arrangements among actual potential competitors impact price per se violations sherman act even unreasonable restraints mergers among competitors eliminate competition including price competition per se illegal many withstand attack existing antitrust standard joint ventures cooperative arrangements also usually unlawful least schemes agreement price necessary market product fee set competition among individual copyright owners fee use compositions covered license blanket license wholly equated simple horizontal arrangement among competitors ascap set price blanket license license quite different anything individual owner issue individual composers authors neither agreed sell individually market use blanket license mask price fixing markets moreover substantial restraints placed ascap members consent decree must ignored district found legal practical conspiratorial impediment cbs obtaining individual licenses cbs short real choice background mind plainly enough indicates years face available alternatives blanket license provided acceptable mechanism least large part market performing rights copyrighted musical compositions agree automatically declared illegal many manifestations rather attacked subjected discriminating examination rule reason may ultimately survive attack issue us today iv noted supra enigmatic remarks appeals respect remedy appear departed strict per se approach invited careful analysis left general import judgment licensing practices ascap bmi consent decree per se violations sherman act reverse judgment copyright misuse judgment dependent upon see supra remand proceedings consider unresolved issues cbs may properly brought appeals course include assessment rule reason blanket license employed television industry issue preserved cbs appeals judgment appeals reversed cases remanded proceedings consistent opinion ordered footnotes quoting cbs witness cbs also leading music publisher publishing subsidiaries affiliated ascap bmi world largest manufacturer seller records tapes ibid act stat cbs leader broadcasters formed bmi disposed interest corporation unless context indicates otherwise references ascap alone opinion usually apply bmi well see infra cbs seeks injunctive relief antitrust violations declaration copyright misuse appeals affirmed district rejection cbs monopolization tying contentions rule district conclusion blanket license unreasonable restraint trade see cbs suggestion appeals held challenged conduct constituted misuse copyrights solely basis finding unlawful price fixing appeals went suggest guidelines remedy indicating despite conclusion liability blanket license totally forbidden appeals said normally finding remedy injunction case blanket license think however remand remedy fashioned ensure blanket license affect price negotiations direct licenses blanket license need prohibited circumstances blanket license simply naked restraint ineluctably doomed extinction enough evidence present record compel finding blanket license serve market need wish full protection infringement suits business reason deem blanket license desirable blanket license includes practical covenant sue infringement ascap copyright well indemnification suits others objection blanket license reduces price competition among members provides disinclination compete think objections may removed ascap required provide form per use licensing ensure competition among individual members respect networks wish engage per use licensing footnotes omitted principle per se unreasonableness makes type restraints proscribed sherman act certain benefit everyone concerned also avoids necessity incredibly complicated prolonged economic investigation entire history industry involved well related industries effort determine large whether particular restraint unreasonable inquiry often wholly fruitless undertaken northern pac see continental gte sylvania topco associates see cases discussed infra cbs also complains pays flat fee regardless amount use makes ascap compositions even though many programs contain little music unable see alone make antitrust violation misuse copyrights sound business judgment indicate payment represents convenient method fixing business value privileges granted licensing agreement petitioner complain must pay royalties whether uses hazeltine patents acquired agreement entered privilege use patents developments desired use automatic radio mfg hazeltine research mckesson robbins agreed independent wholesalers prices charged products manufactured oil firms controlling substantial part industry agreed purchase surplus gasoline intent necessary effect increasing price trenton potteries manufacturers distributors certain vitreous pottery fixtures agreed sell uniform prices cohn music radio broadcasters sherman act geo complaint ascap civ sdny pp ascap trade cases sdny see ascap supp sdny witmark sons jenson supp appeal dismissed sub nom witmark sons berger amusement ascap trade cases sdny bmi similar situation original decree bmi reported bmi trade cases ed new consent judgment entered following monopolization complaint filed bmi trade cases sdny ascap bmi decrees vary respects bmi decree specify bmi may obtain nonexclusive rights affiliates district may set fee parties unable agree nonetheless parties stipulated courts accepted cbs secure direct licenses bmi affiliates ease difficulty case may ascap members ascap application shenandoah valley broadcasting supp sdny aff cert denied ascap application national broadcasting trade cases sdny see also ascap motion metromedia national broadcasting request annual blanket license specific ascap compositions frequently used variety shows intended acquire remaining rights background theme music direct transactions program packagers see ascap application national broadcasting supra trade cases cf continental gte sylvania moreover unthinking application per se rule might upset balancing economic power procompetitive anticompetitive effects presumably worked decree see cases cited supra cases involved licenses sold individual movie theaters perform compositions already motion pictures soundtracks ascap barred members assigning performing rights movie producers time recording rights licensed theaters effectively unable engage direct transactions performing rights individual copyright owners certain individual television radio stations appearing amici curiae argue per se rule extend ascap blanket licenses well television stations filed antitrust suit effect buffalo broadcasting ascap civ sdny filed see supra appeals apparently outlaw blanket license across board permit various circumstances deemed necessary sufficiently desirable even enjoin blanket licensing television networks relief realized normally follow finding per se illegality license context instead requested cbs remanded district require ascap offer addition blanket licensing competitive form licensing licensing ascap recognized consent decrees might even susceptible per se rule blanket licensing rationale unusual relief per se case blanket license simply naked restraint ineluctably doomed extinction contrary appeals found blanket license might well serve market need ibid seems us per se approach yield readily circumstances effect rather bobtailed application rule reason bobtailed sense unaccompanied necessary analysis demonstrating particular licensing system undue competitive restraint surely ascap abandoned issuance licenses confined activities policing market suing infringers hardly said member copyright owners violation antitrust laws common agent issue licenses copyright laws publicly perform copyrighted music burden obtaining prior consent cf zenith radio hazeltine research complaint cbs alleged wholly impracticable obtain individual licenses directly composers publishing houses says willing exactly ascap enjoined granting blanket licenses cbs competitors network television business app see koenigsberg copyright act advances creator cleve rev cf silver new york stock exchange musical composition consumed many different people time without creator knowledge owner real way demand reimbursement use property except copyright laws effective way enforce legal rights see twentieth century music aiken takes organization rather large size monitor uses deal users behalf composers moreover inefficient many organizations duplicating monitoring use scrutiny occasionally required must merely subsume burdensome analysis required rule reason see national society professional engineers else apply rule reason start per se rule employed considerable experience type challenged restraint course changes brought new technology new marketing techniques might also undercut justification practice district found cbs require individual license transactions per year operate system distributing license revenues members ascap relies primarily networks records compositions used see timberg antitrust aspects merchandising modern music ascap consent judgment law contemp prob itchy fingers bandleader restive baton said wait contracts drawn ascap individual publisher members much less formal acquiescence characteristically unavailable composer author significantly ascap deals nondramatic performance rights nature dramatic rights musicals negotiated individually well advance time performance true various rights sheet music recording synchronization licensed individual basis cf grinnell philadelphia nat bank comment music copyright associations antitrust laws ind see also garner ascap licensing provisions amended final judgment bull copyright soc performing rights licensed blanket basis nation world moreover nature product composition simultaneously consumed many users composers numerous markets numerous incentives produce blanket license unlikely cause decreased output one normal undesirable effects cartel since popular songs get increased share ascap revenue distributions composers compete even within blanket license terms productivity consumer satisfaction cf oil distinguishing chicago bd trade ground among effects challenged rule creation public market trenton potteries distinguishing chicago bd trade ground involve price agreement among competitors open market cbs claim individual members affiliates sellers ascap bmi agreed among prices charged particular products compositions offered argued judgment appeals nevertheless affirmed ground blanket license tying arrangement violation sherman act ground ascap bmi monopolized relevant market contrary district appeals rejected submissions disturb latter judgment respects particularly since cbs file petition certiorari challenging appeals failure sustain tying monopolization claims appeals address issue bmi insists cbs preserve question event issue open appeals prefer first address matter interest enforcement consent decree assume continue play role litigation remand justice stevens dissenting holds ascap blanket license species price fixing categorically forbidden sherman act agree holding remands cases appeals leaving open question whether blanket license employed ascap bmi unlawful inquiry think question properly us answered affirmatively ample precedent affirmance judgment appeals ground differs rationale provided course modify judgment litigation judgment appeals blanket licenses may never offered ascap bmi rather judgment directed district fashion relief requiring offer additional forms license well even though judgment may consistent stated conclusion blanket license illegal per se kind price fixing entirely consistent conclusion petitioners exclusive policy violates rule reason appeals may well decide remand judgment however remand necessary record full one reflecting extensive discovery eight weeks trial district findings fact thorough well supported clearly reveal challenged policy significant adverse impact competition therefore affirm judgment appeals december president cbs television network wrote ascap bmi requesting promptly grant new performance rights license provide effective january payments measured actual use music ascap bmi responded stating considered cbs request application license accordance provisions consent decree treat even though neither decree provides licensing basis rather pursuing discussion cbs instituted suit whether cbs letter considered proper demand licensing relevant question relief fact seriously questioned ascap bmi steadfastly adhered policy offering overall blanket licenses notwithstanding requests limited authorizations thus ascap rejected request nbc licenses specific compositions well earlier request group television stations limited authority blanket licenses purchasing neither ascap bmi ever offered license anything less entire portfolio even experimental basis moreover response cbs letter sufficient characterize consistent policy defense lawsuit surely refusal license anything less entire repertoire rather decision offer blanket licenses raises serious antitrust questions case ii prior cases question illegality licensing policy ascap bmi exclusive sources licenses copyright like patent statutory grant monopoly privileges rules prohibit patentee enlarging statutory monopoly conditioning license purchase unpatented goods refusing grant license one patent unless licensee also takes license another equally applicable copyrights clear however mere fact holder several patents granted single package license covering establish illegality point settled automatic radio mfg hazeltine research reconfirmed zenith radio hazeltine research therefore unquestionably correct conclusion ascap issuance blanket licenses covering entire inventory standing alone automatically unlawful cases identify important limitation rule former careful point record present question whether package license unlawful hazeltine refused license basis latter case held package license illegal refusal since ascap offers blanket licenses licensing practices fall illegal side line drawn two hazeltine cases significant distinction unlike hazeltine ascap exclusive control copyrights portfolio perfectly possible least legal matter user music negotiate directly composers publishers whatever rights may desire availability practical alternative alters competitive effect blockbooking policy ascap therefore quite correct insistence blanket license categorically condemned authority blockbooking cases cases instructive directly answer question whether ascap practice unlawful answer question depends evaluation effect practice competition relevant market course well settled sales practice permissible small vendor least coercion present may unreasonable employed company dominates market therefore must consider record tells us competitive character market iii market music issue wholly dominated blanket licenses virtually every domestic copyrighted composition repertoire either ascap bmi virtually without exception means used secure authority perform compositions blanket license blanket license patently discriminatory user purchases full access ascap entire repertoire even though needs satisfied far limited selection price pays access unrelated either quantity quality music actually uses indeed probably use competitive system rather unique system price based percentage user advertising revenues measure reflects customer ability pay totally unrelated factors cost quality quantity product normally affect price competitive market ascap system requires users buy music want price beyond ability pay perhaps even beyond reasonable access getting may well far higher choose spend music competitive system classic example economic discrimination record plainly establishes price competition separate musical compositions blanket license expensive network play popular current hit prime time use unknown composition background music soap opera cost user unaffected amount used program programs user incentive economize example substituting otherwise less expensive songs established favorites reducing quantity music used program blanket license thereby tends encourage use music also larger share really valuable music expected competitive system characterized separate licenses since revenues passed composers basis reflecting character frequency use music tendency increase rewards established composers expense less well known perhaps prospect event unlikely blanket license present new songwriter opportunity try break market offering product sale unusually low price absence opportunity however unlikely may characteristic cartelized rather competitive market current state market explained ground operate competitively issuance limited thus less restrictive licenses ascap feasible district findings disclose reason rights negotiated basis either composer publisher directly agent ascap fact ascap compensates composers publishers precisely bases distributions royalties calculated basis difficult see royalties also collected way moreover record also shows ascap scheme govern competitive markets competitive market synch rights exists use blanket licenses motion picture industry discontinued market promptly developed industry sum record demonstrates market issue one highly competitive competitive iv since record describes market competitive since market dominated two firms engaged single blanket method dealing surely seems logical conclude trade restrained unreasonably ascap argues however least cbs restraint since network free deal directly copyright holders district found cbs failed establish compelled take blanket license ascap cbs introduced evidence suggesting significant number composers publishers satisfied ascap system disinclined deal directly network found evidence unpersuasive light cbs substantial market power music industry importance copyright holders network television exposure moreover arguable cbs go along television networks use economic resources exploit destructive competition among purveyors music driving price performance rights far lower level none demonstrates ascap practices lawful ascap held liable injunctive relief cbs request fact cbs substantial market power deprive right complain trade restrained large buyers well small protected antitrust laws indeed even victim conspiracy wrongdoer forfeited protection law moreover conclusion excessive competition cause one side market harm good may justify legislative exemption antitrust laws constitute defense violation sherman act even though characterizing cbs oligopolist may relevant question remedy even though free competition might adversely affect income good many composers publishers considerations affect legality ascap conduct basically ascap underlying argument cbs must viewed acted complete freedom choosing blanket license supported district findings district find cbs cancel blanket license tomorrow continue use music programming compete networks district find course without risk expense rather district finding within year continue pay millions dollars annual blanket license cbs able develop needed machinery enter necessary contracts words although barriers direct dealing cbs alternative paying blanket license real significant insurmountable far establishing ascap immunity liability district findings judgment confirm illegality conduct neither cbs user willing assume costs risks associated attempt purchase music competitive basis fact attempt cbs break ascap monopoly might well succeed preclude conclusion smaller less powerful buyers totally foreclosed competitive market despite size cbs may obtain music competitive basis without incurring unprecedented costs risks fear unpredictable consequences coupled certain predictable costs delays associated change method purchasing music unquestionably inhibits cbs management decision embark competitive crusade even ascap offered cbs special bargain forestall crusade special arrangement cure marketwide restraint whatever management decision cbs might made perfectly clear question whether competition market unduly restrained one single company management authorized answer often case arrangement among competitors serve eliminate competition forever delay appearance increase costs new entry may well state market even without judicial intervention ascap monopoly might eventually broken cbs benefits outweigh significant costs risks involved commencing direct dealing hardly means policy issue lawful arrangement produces marketwide price discrimination significant barriers entry unreasonably restrains trade even discrimination barriers limited life expectancy history suggests however restraints enduring character antitrust policy requires great aggregations economic power closely scrutinized duty especially important aggregation composed statutory monopoly privileges cases repeatedly stressed need limit privileges conferred patent copyright strictly scope statutory grant record case plainly discloses limits exceeded ascap bmi exercise monopoly powers far exceed sum privileges individual copyright holders indeed ascap argues blanket license constitutes product significantly different sum component parts agree premise conclude aggregate monopolistic restraint trade proscribed sherman act see new york telephone dayton board education brinkman massachusetts mutual life ins ludwig american railway express see ante describing relief ordered appeals unusual per se case suggesting decision appears consistent approach issues raised preserved throughout seems clear see cbs contends blanket licensing method illegal blockbooking practical terms coercive effect also illegal device per se violation noted cbs also claims violation sherman act need go legal arguments point grounded factual claim barriers direct licensing bypass ascap blanket license district noted rejected contention findings clearly erroneous claim must therefore fail time record brief respondents supp sdny ascap responded letter general counsel stating consider request next board directors meeting regarded application license consistent decree letter bmi president stated bmi consent decree provides several alternative licenses ready explore see ante decree requires ascap offer licenses alternative blanket license ascap trade cases sdny analytically however little difference two license also covers entire ascap repertoire therefore simply miniblanket license true blanket license fees set way dependent quantity quality music used see infra see ascap application national broadcasting trade cases sdny see ascap application shenandoah valley broadcasting supp sdny aff cert denied mercoid investment ethyl gasoline international business machines shoe machinery indeed leading cases condemning practice blockbooking involved copyrighted motion pictures rather patents see paramount pictures loew see tampa electric nashville coal upholding requirements contract ground neither seller dominant position market standard fashion myriad outlets substantial sales volume coupled practice relying upon exclusive contracts standard oil plainly restrictive tying arrangement international salt publishing upholding challenged advertising practice volume commerce affected insignificant insubstantial seller found occupy dominant position relevant market cases make clear violation sherman act requires volume commerce affected substantial seller enjoy dominant position see proof actual compulsion required cf royster theatres american theatres cert denied milwaukee towne loew cert denied critical question one likely practical effect arrangement whether believes probable performance contract foreclose competition substantial share line commerce affected tampa electric nashville coal supra majority opinion references ascap generally encompass bmi well see cirace cbs ascap economic analysis political problem ford rev bargain allows monopolist reap benefits perfect price discrimination without confronting problems posed dealing different buyers different terms many years prior commencement action bmi fee amounted net receipts sponsors certain specified deductions fee access ascap larger repertoire set net receipts recent years however cbs paid flat negotiated fee rather percentage ascap jt app pp see cirace supra history indicates inception ascap exhibited tendency discriminate price license fee based upon percentage gross revenue discriminatory grants number rights different licenses different total dollar amounts depending upon ability pay effectiveness price discrimination significantly enhanced blanket license ascap consent decree receipt application ascap required advise applicant writing fee deems reasonable license requested parties unable agree fee within days application applicant may apply district southern district new york determination reasonable fee ascap trade cases sdny bmi decree contains similar provision judicial determination reasonable fee ascap economic expert robert nathan unequivocal point price competition system separate musical compositions sir tr see determining royalties ascap distinguishes feature theme background uses music amended decree requires ascap distribute royalties basis gives primary consideration performance compositions decree provided additional option receiving royalties deferred plan provides additional compensation based length membership recognized status individual works see ascap trade cases pp sdny see generally areeda turner antitrust law cirace supra see supra synch right right record copyrighted song synchronization film videotape obtained separately right perform music latter controlled ascap bmi see cbs ascap see ascap supp sdny see jt app pp testimony albert berman managing director harry fox agency television synch rights movie performance synch rights handled fox agency serves broker thousands music publishers see see perma life mufflers international parts simpson union oil joseph seagram sons see national society professional engineers see individual user transaction costs involved direct dealing individual copyright holders may well prohibitively high least absence broker agency routinely handling requests moreover district found writers publishers support prefer ascap system direct dealing apprehension direct dealing cbs overcome district found cbs market power importance television exposure similar conclusion far less likely respect users risks involved venture appear substantial one significant risk may traced directly ascap members relates music music performed shows movies already network inventory network must still secure performing rights networks accumulate substantial inventories shows government pointed amicus curiae networks television stations discontinue blanket license required obtain performance rights shows attempt create opportunity copyright owners condition granting performing rights attempt obtain entire value shows produce words case bilateral monopoly pricing indeterminate bilateral monopoly television networks terminate blanket licenses concluded agreement every owner copyrighted music allow future performance identified price networks determine whether price sufficiently low termination blanket license profitable prospect negotiations offers copyrights owners ability misuse rights way ensures continuation blanket licensing despite change market conditions may make forms licensing preferable brief amicus curiae