Arbitron Sues Saga Communications

Arbitron has filed a Federal lawsuit suit against Saga Communications in United States District Court in Delaware alleging it’s Milwaukee stations illegally used its rating for both sales and programming decisions.  The suit also claims Saga organized a bonus structure based on Arbitron ratings.

Saga Communications does not subscribe to Arbitron’s ratings. 

Arbitron claims obtained copies of the ratings “which were reproduced and circulated among its personnel.  These unauthorized copies were then used on a regular and systematic basis by Defendants for various purposes including setting advertising rates charged by Defendants’ radio stations and making programming decisions… Defendants decided whether to give their employees bonuses and if so, the size of those bonuses based on the station’s performance in the Arbitron ratings.  This system was so widespread, open and notorious at Defendants’ radio stations, that station personnel including senior management commonly referred to the system as the ‘Arbitron Bonus.’”

Arbitron is seeking $150,000 per act of infringement plus fees.

Saga Communications has yet to publicly comment.

Consultant Jaye Albright says this one is going to be worth watching, and yet most Arbitron legal actions against non-subscribing stations are kept under wraps, so we may never know the outcome in court.

ALSO READ:  "Hardball" from Jaye Albright's Breakfast Blog.  Click Here.