Northeastern Educational Television of Ohio, Inc. v. Educational Television Assoc. of Metropolitan Cleveland

758 F. Supp. 1560, 1990 U.S. Dist. LEXIS 18959, 1990 WL 271144
CourtDistrict Court, N.D. Ohio
DecidedNovember 26, 1990
DocketC87-1666
StatusPublished
Cited by2 cases

This text of 758 F. Supp. 1560 (Northeastern Educational Television of Ohio, Inc. v. Educational Television Assoc. of Metropolitan Cleveland) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Northeastern Educational Television of Ohio, Inc. v. Educational Television Assoc. of Metropolitan Cleveland, 758 F. Supp. 1560, 1990 U.S. Dist. LEXIS 18959, 1990 WL 271144 (N.D. Ohio 1990).

Opinion

MEMORANDUM AND ORDER

WILLIAM K. THOMAS, Senior District Judge.

I.

This action involves alleged violations of Sections 1 and 2 of the Sherman Act (15 U.S.C. Sections 1 and 2), and Sections 1, 4, 5, 12 and 16 of the Clayton Act (15 U.S.C. Sections 12, 15, 16, 22 and 26). In its complaint plaintiff sues for “appropriate injunctive relief and to recover treble damages which Plaintiff has sustained because of the violations of above cited statutes.” Complaint under the Sherman Antitrust Act at paragraph 1. On May 24, 1990 plaintiff’s counsel by letter informed the court and all defendants that plaintiff “will elect not to present evidence as to specific monetary damages.” Thus, it is proceeding only with its prayer for injunctive relief under 15 U.S.C. § 26. Although the plaintiff through a corporate officer has not signed such a waiver, the letter of plaintiffs counsel is deemed binding on the plaintiff.

The plaintiff is Northeastern Educational Television of Ohio, Inc. (hereinafter “NETO”) which operates as WNEO-TV (Channel 45) out of Alliance, Ohio and WEAO-TV (Channel 49) out of Akron, Ohio. There are five different defendants. First, Educational Television Association of Metropolitan Cleveland (hereinafter “ETAMC”) operates as WVIZ-TV (Channel 25) out of Cleveland, Ohio. Betty Cope, President and General Manager of WVIZ-TV, is a separate defendant. A third defendant is Eastern Educational Network, Inc. (hereinafter “EEN”), a Massachusetts corporation which prepares, produces, disseminates and cooperates with others in the broadcasting of educational television. Another defendant is the Interregional Program Service (hereinafter “IPS”), which is a management committee formed by one representative from each regional network with member stations electing the remaining ten members. The IPS was originally founded by EEN, and among other things, the service has policies and rules regarding exclusivity which are at the heart of this lawsuit. The last defendant is CBC Enterprises, an unincorporated program syndication service of the Canadian Broadcasting Company, with its principal office in New York City.

The allegations in plaintiff NETO’s complaint include the following:

10. All of the Defendants have violated the provisions of [the Sherman Act, as amended] ... in that they are engaged in a combination and conspiracy to place unlawful restraints upon trade and commerce in Ohio.
11. Defendants have combined to destroy competition and to secure a monopoly by the institution of a policy known as Duplicate Market Criteria. This policy classifies WVIZ-TV as the “primary licensee” and WNEO-TV/WEAO-TV as the “secondary licensee”, which allows the primary licensee the right to exclusive programming if it so chooses. Exclusivity of programming began on or about January 1, 1985 and continues as a policy promulgated by the Defendants Interregional Program Service and Eastern Educational Network, Inc.
13. Such exclusive practices engaged in by the Defendants injure competition and public television viewers throughout the coverage area of WNEO-TV and WEAO-TV. Since January 1, 1985, the Defendants have elected to deny WNEO-TV and WEAO-TV the right to purchase *1562 at least 130 programs offered by Interre-gional Program Service that otherwise could have been purchased by Plaintiff except for the unlawful actions of the Defendants, including the program, “Nature of Things.” These practices denying substantial portions of the population of Northeast Ohio access to said programs constitute an unlawful restriction of competition as Plaintiff can no longer acquire these quality programs, even on a competitive basis with WVIZ-TV.

Complaint Under the Sherman Antitrust Act at 4-6. Turning then to the relevant statutory law, Section 1 of the Sherman Act provides in pertinent part:

Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal.

15 U.S.C. Section 1. Section 2 of the Sherman Act provides:

Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony....

15 U.S.C. Section 2.

CBC filed a Motion to Dismiss on September 9, 1987. In that motion CBC moved to dismiss pursuant to Fed.R.Civ.P. 12 for “lack of personal jurisdiction, improper venue, failure to state a claim upon which relief can be granted and defective service of process.” Id. The memorandum supporting that motion, as well as the subsequent briefing, focussed primarily on the issue of personal jurisdiction. The briefing did address, to a lesser extent, CBC’s assertion that NETO’s complaint fails to state a claim upon which relief can be granted. In an Order filed December 18, 1987, Judge Bell ruled as follows:

Accordingly, defendant’s motion to dismiss on the basis of improper venue and lack of personal jurisdiction is denied. Defendant’s motion in relation to service is granted in that defective service on CBC is quashed and leave of twenty days is granted to effect proper service. Defendant’s motion to dismiss pursuant to Rule 12(b)(6) will be treated as a motion for summary judgment and ruling deferred pursuant to the schedule provided in this order.

December 18, 1987 Order at 14-15.

On May 9, 1990, this case was transferred to the docket of Judge William K. Thomas. With the jurisdiction and venue issues having been resolved by Judge Bell, the only remaining motion as to defendant CBC is its motion for summary judgment.

II.

In support of the original Motion to Dismiss, CBC makes the following argument:

The sole complaint that NETO raises against CBC is that defendant EEN licensed at least one CBC series, Nature of Things, on an exclusive basis in the Alliance-Akron area. Again, even if EEN’s actions were to be imputed to CBC, exclusivity alone is not prohibited by the antitrust laws, and it is clear that exclusive licensing is an acceptable practice in the television industry.

Memorandum in Support of CBC Motion to Dismiss at 19-20. Attached to the memorandum is an affidavit of Jean-Louis Ar-cand, Director of United States Operations for CBC and formerly responsible for special projects in the office of the president of CBC. This affidavit states in pertinent part:

8. CBC has not dealt with plaintiff Northeastern Educational Television of Ohio, Inc. (“NETO”)....

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758 F. Supp. 1560, 1990 U.S. Dist. LEXIS 18959, 1990 WL 271144, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northeastern-educational-television-of-ohio-inc-v-educational-television-ohnd-1990.