Posts

Showing posts from January, 2011

Denial of Certiorari in Online Music Antitrust Case

Today, the Supreme Court denied a petition for certiorari in Sony v. Starr.  This class action against the major record labels challenged two joint ventures created to license the majors' music online: pressplay and MusicNet.  Although the two ventures long ago faded into Internet history, the denial of certiorari means that the case can proceed in the lower courts.  The petition came after the Second Circuit's decision in January 2010 that reversed the trial court's summary judgment in favor of the labels on the grounds that the complaint did not satisfy the plausibility standard set forth in Bell Atlantic v. Twombly.  As reiterated in Ashcroft v. Iqbal, “[a] claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.”  In reversing, the Second Circuit found that the allegations, taken as true, amply state a plausible claim of conspiracy to fix pri…