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Harry Fox Sued Over MP3.com Settlement

By Erik Gruenwedel, L.A.
Publication: Billboard Bulletin
Date: Thursday, December 5 2002
A Tennessee songwriter and a music publisher have filed a class-action lawsuit against the Harry Fox Agency (HFA) over the $30 million settlement of the licensing body's copyright-infringement suit against MP3.com.

The suit was filed this week in L.A. Superior Court by Robert Morrison and Scarlet Moon Music. It alleges that an undisclosed number of artists and publishers who were not party to the MP3.com settlement--but whose copyrights were co-owned by others who were--are entitled to a percentage of the settlement. In addition, the suit says the settlement "did not constitute fair value for the rights granted." In the 2000 case, MP3.com paid HFA $15 million for retroactive licenses and $15 million as an "advance payment" for future licenses. The class action claims that the $30 million award amounted to about $50 per work infringed, but based on "minimum statutory damages," the figure should have been $750. The suit seeks unspecified damages.

HFA declined to comment.

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