In the first appeal of an ASCAP rate proceeding under Judge Cote, the Second Circuit has affirmed the District Court’s decision.
The case is interesting for several reasons. First, as noted, it is the first rate decision of Judge Cote to be appealed. The last rate decision of Judge Connor, the former SDNY judge who managed the ASCAP docket, the Yahoo! case, was recently remanded. Second, the parties offered two vastly different views of the value of the through-to-the-audience (TTTA) license ASCAP provided. In the proceedings in the District Court, ASCAP contended that it was entitled to over $41 million in fees for the period between 2003 and 2011. Mobi contended that it owed only $301,257.99 for the period from November 2003 to July 2009. Third, Judge Cote did not attempt to fashion her own reasonable rate. Instead, she rejected ASCAP’s proposed fee proposal and generally adopted MobiTV’s fee proposal. The result of Judge Cote adopting MobiTV’s proposal was a judgment setting a fee of $405,000 for the period from November 2003 through March 2010.
The Second Circuit’s decision is below:
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