Radio Station Faces the Music and Pays

ABC Company, a radio broadcast station, received a request to air an advertising campaign. In conjunction with the campaign, ABC Company regularly used musical content acquired from XYZ Corporation. A man claiming to be the music’s composer brought suit, alleging the music belonged to him and that ABC’s unlicensed and unauthorized use on the radio constituted copyright infringement. Although ABC Company tendered defense and indemnity to XYZ Corporation pursuant to a contract, XYZ Corporation lacked sufficient assets or insurance to protect ABC Company. Total Cost: $300,000.