iHeartMedia, Inc. v. SheridanAnnotate this Case
The United States District Court for the Middle District of Georgia certified a question of Georgia law to the Georgia Supreme Court. Arthur and Barbara Sheridan owned several pre-1972 master sound recordings of certain popular songs, as well as the associated intellectual property and contract rights. iHeartMedia operated AM/FM radio stations, as well as internet radio services. These latter services allow listeners to access and listen to a song through an internet-connected device such as a tablet, computer, or smartphone. iHeartMedia streamed the Sheridans’ recordings to listeners over its internet radio platform, iHeartRadio. It was undisputed that iHeartMedia had no license, authority, or consent from the Sheridans to stream the recordings, and iHeartMedia did not compensate the Sheridans for the use of their recordings. The Sheridans claimed that iHeartMedia needed their consent to transfer their master sound recordings to iHeartRadio listeners, and that iHeartMedia engaged in racketeering activity by making unauthorized transfers. iHeartMedia moved to dismiss the Sheridans’ complaint under the radio broadcast exemption in OCGA 16-8-60 (c) (1), which stated that the statute did not apply to “any person who transfers or causes to be transferred any such sounds or visual images intended for or in connection with radio or television broadcast transmission or related uses." After review, the Supreme Court found that the type of internet radio services being offered by iHeartMedia, Inc. in this case fell under the exemption set forth in OCGA 16-8-60 (c) (l).