Case 2:16-cv-09051-TJH-AS Document 65 Filed 08/14/18 Page 1 of 3 Page ID #:933

8 United States District Court

9 Central District of California
10 Western Division
11

12 GLOBAL MUSIC RIGHTS, LLC CV 16-09051 TJH (ASx)

13 Plaintiff,
14 v.
Order
15 RADIO MUSIC LICENSE
COMMITTEE, INC., [57]
16
Defendant.
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20 The Court has considered Plaintiff Global Music Rights, LLC’s [“Global
21 Music”] motion to lift the stay, together with the moving and opposing papers.
22 On November 18, 2016, Defendant Radio Music License Committee, Inc.
23 [“RMLC”] filed an action in the Eastern District of Pennsylvania [“Pennsylvania
24 Action”], alleging that Global Music violated antitrust laws by acting as a monopoly
25 for the works contained in its repertory and charging anti-competitive prices to
26 RMLC’s members. RMLC, also, sought a preliminary injunction. The Pennsylvania
27 Action stemmed from unsuccessful negotiations between Global Music and RMLC for
28 a licensing agreement.

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 Case 2:16-cv-09051-TJH-AS Document 65 Filed 08/14/18 Page 2 of 3 Page ID #:934

1 On December 6, 2016, in response to the Pennsylvania Action, Global Music

2 filed this action, alleging that RMLC operates an unlawful monopsony – when a large
3 buyer exercises monopoly power over the seller – in violation of the Sherman Act, 15
4 U.S.C.A. § 1 and California’s antitrust laws.
5 On April 7, 2017, Judge O’Connell stayed this action pending pursuant to the
6 first-to-file rule.
7 Global Music, now, moves to lift the stay.
8 The first-to-file rule is a doctrine of federal comity that allows a district court to
9 stay an action when another action involving the same parties, facts, and issues was
10 filed first in another district. See Alltrade, Inc v. Uniweld Prod., Inc., 946 F.2d 622,
11 625 (9th Cir. 1991). The purpose of the first-to-file rule is, inter alia, to
12 maximize,judicial economy and consistency, and to avoid conflicting judgements.
13 Kohn Law Grp., Inc v. Auto Parts Mfg. Miss., Inc., 787 F.3d 1237, 1240 (9th Cir.
14 2015). If the first-filed action is at risk of dismissal, the second-filed action should be
15 stayed, rather than dismissed, pending the adjudication of that motion. See Alltrade,
16 Inc., 946 F.2d at 629.
17 Departure from the first-to-file rule is an exception to be utilized only in “rare
18 or extraordinary circumstances, [such as] inequitable conduct, bad faith, or forum
19 shopping.” Knedlik v. Lincoln Inst. Of Land Policy, 883 F.2d 1024, *4 (9th Cir.
20 1989). Notably, the Ninth Circuit held that the filing of an anticipatory suit may be
21 deemed forum shopping. Alltrade, Inc., 946 F.2d at 628 (citing Missions Inc. Co v.
22 Puritan Fashion Corp., 706 F.2d 599, 602 (5th Cir. 1983)). Whether to depart from
23 the first to file rule is left to the Court’s discretion. Alltrade, Inc., 946 F.2d at 628.
24 Here, Global Music argued that the Court should decline to apply the first-to-file
25 rule because RMLC forum shopped when it filed the Pennsylvania Action in
26 anticipation of this action. However, Global Music failed to provide any evidence that
27 RMLC filed the Pennsylvania Action in anticipation of this action. See Alltrade, Inc.,
28 946 F.2d at 628. Further, Global Music’s argument that the stay should be lifted

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 Case 2:16-cv-09051-TJH-AS Document 65 Filed 08/14/18 Page 3 of 3 Page ID #:935

1 because it is prejudiced by not being able to initiate discovery is misplaced. Rather,

2 Global Music should seek leave in the Pennsylvania Action to initiate discovery.
3

4 Accordingly,
5

6 It is Ordered that the motion to lift the stay be, and hereby is, Denied.
7

8 Date: August 14, 2018

9 __________________________________
10 Terry J. Hatter, Jr.
11
Senior United States District Judge

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