The U.S. Justice Department is investigating the music-publishing arms of Japanese consumer electronics company Sony Corp. (SON.L, SNE) and Universal Music Group for alleged price coordination in music publishing, according to reports citing people familiar with the matter.
The probe also includes the American Society of Composers, Authors & Publishers, a rights-management company that collects fees on behalf of music publishers and the songwriters they represent.
The reports indicated that the Justice Department recently sent out requests for documents from Sony Corp.'s Sony/ATV Music Publishing and French media and telecom giant Vivendi SA's (VIV.L, VIVEF.PK) Universal Music Publishing, along with the American Society of Composers, Authors and Publishers and Broadcast Music Inc., seeking materials related to a wide range of licensing issues, including the two publishers' efforts to withdraw their rights from Ascap and BMI's licensing agreements with Internet radio company Pandora Media Inc. (P).
The Justice Department's antitrust division reportedly said in June it was reviewing decades-old agreements with Ascap and Broadcast Music Inc. that govern songwriter royalties. The review could lead to changes in how much Pandora pays songwriters when their works are played.
Sony reportedly said last week it may drop out of Ascap and BMI, depending on the outcome of the department's review.
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