[1] It examined a complaint brought by CBS affiliates that the method in which broadcast companies determine fees for the issuance of blanket licenses (the permission to use a set of copyrighted media materials) was a violation of the Sherman Antitrust Act.

The TV network CBS (also, at the time, owner of Columbia Records) filed an antitrust suit against licensing agencies alleging that the system by which these agencies received fees for the issuance of blanket licenses to perform copyrighted musical compositions amounted to illegal price fixing.

The basic question in the case is "whether the issuance by ASCAP and BMI to CBS of blanket licenses to copyrighted musical compositions at fees negotiated by them is price fixing per se unlawful under the antitrust laws."

The Supreme Court held that blanket licenses issued by ASCAP and BMI did not necessarily constitute price fixing.

The judgment, delivered by White J, was unanimous in holding that such practice should instead be examined under the rule of reason to determine if it is unlawful.