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MP3.com Files Suit Vs. Former Law Firm

By:Erik Gruenwedel, L.A.
Publication: Billboard Bulletin
Date: Monday, January 21 2002
MP3.com is suing its former law firm, Cooley Godward LLP. The suit claims that the Palo Alto, Calif.-based firm failed to warn the music file-sharing service about the potential for copyright-infringement liability prior to the launch of My.MP3.com, which allowed users to listen and store audio files on the Internet for free. The suit, filed Friday in L.A. Superior Court, seeks more than $175 million in damages, making it one of the largest malpractice claims in state history.

The majors sued MP3.com shortly after the launch of My.MP3.com in January 2000. Universal Music Group was awarded $53.4 million in the case; its parent, Vivendi Universal, later acquired MP3.com for $372 million (Bulletin, May 22, 2001).

In MP3.com's suit-which purports fraud, breach of fiduciary duty, and legal malpractice-the company says the law firm failed to gather the necessary outside experts to argue on its behalf in court, then tried to cover up its actions.
Representatives from MP3.com and Cooley Godward were unavailable for comment.

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