Bid to settle MP3.com lawsuit - Brief Article

Electronics Times, May 8, 2000

A US court has ruled that MP3.com has infringed record companies' and artists' copyright with its Internet music distribution service. The penalties could be as high as $30,000 for a single infringement.

MP3.com had argued that it was not breaching copyright because its my.mp3.com service obliges users to prove they own a CD before downloading the site's MP3 version of a song. Proof is given by allowing the disc to be scanned online. The company says it will resist any compensation claims.

Following the ruling, Judge Jed Rakoff arranged a meeting between MP3.com and the record companies that had sued it. The music moguls had wanted the site closed but appear to have had a change of heart. The Recording Industry Association of America now says that it is seeking a settlement that allows the service to continue.

Robin Richards, president of MP3.com, says the my.mp3.com service generates no revenue directly, though the company sees it as highly desirable in terms of raising advertising revenue.

Meanwhile, the company has run into trouble with its main business - supplying downloads of music by performers who do not yet have major recording contracts.

The different artists' webpages detail how many times music has been downloaded and how much each has received as a result.

The feature was introduced without consulting the performers, and some bands whose earnings are low fear that the information will discourage users from accessing their music. Feature, page 40