More than a dozen music publishers don't have to sweat Peloton's claim that they engage in anticompetitive conduct
More than a dozen music publishers don't have to sweat Peloton's claim that they engage in anticompetitive conduct, as a New York federal judge on Wednesday dismissed the indoor cycling giant's counterclaim.
The fight began in March 2019 when 15 music publishers sued Peloton for copyright infringement. While the company had negotiated licenses with some of the publishers for the music Peloton instructors play during their classes not every publisher struck such a deal. Talks with the National Music Publishers Association to expand the licensing agreements to others fell apart and the copyright infringement suit followed.
U.S. District Judge Denies Cote 's Wednesday decision likely left the publishers singing a happy tune. Cote agreed with their argument that Peloton's antitrust claims failed because it didn't identify a relevant market — even though she acknowledged the cycling company plausibly alleged the publishers conspired to deny it licenses to their works.
"Peloton defines the relevant market as sync 'licenses to the copyrighted works controlled and collectively negotiated by the [Music] Publishers through NMPA.,'" writes Cote. "Peloton does not explain why it cannot substitute songs with sync licenses owned by the Music Publishers for songs with sync licenses owned by other publishers.
Cote found that Peloton had plenty of opportunity to amend its relevant market and didn't, and allowing it to do so at this stage in litigation would cause unreasonable cost and delay. She also found that Peloton's tortious interference claim fails because the company didn't show that it would have entered into licensing agreements with the member publishers were it not for the NMPA's interference.
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