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Mp3.com Found Liable For Copyright Violations

By:Eileen Fitzpatrick, L.A.; Jonathan Cohen, N.Y.
Publication: Billboard
Date: Friday, April 28 2000
MP3.com broke copyright law by creating a database for users to store music and access it via the Internet, a U.S. federal court ruled today (April 28). The ruling was made based on a Jan. 21 copyright infringement suit filed by the Recording Industry Association Of America on behalf of several major record companies, claiming that MP3.com's My.MP3.com service copied songs from 45,000 CDs onto its server without proper license. The suit seeks to shut down the service.

The central issue of the case was whether MP3.com's database constituted copyright violation, since the My.MP3.com service can only work if the user has a legally-purchased copy of the music in question.

A full formal ruling and explanation from U.S. district judge Jed Rakoff is expected in two weeks. MP3.com chairman/CEO Michael Robertson said the company will appeal after the release of the full decision.

When MP3.com announced the service, Robertson dismissed speculation that it could lead to a lawsuit. In an open letter to RIAA president/CEO Hilary Rosen, posted Jan. 21 on MP3.com's Web site, Robertson called the lawsuit an action "against consumers' rights, against new technologies, and against expansion of artists' revenues."

On Feb. 7, MP3.com filed suit against the RIAA and Rosen for alleged defamation, libel, economic interference, and unfair business practices. According to the suit, filed in San Diego Superior Court, MP3.com claims that the RIAA and Rosen "have waged a campaign to impugn and disparage MP3.com as supporting music theft, piracy, and other disreputable practices."

Calling the lawsuit's claims "ridiculous," Rosen said in a statement: "This is a transparent attempt on the part of MP3.com to silence criticism of its infringing tactics. It won't work." She adds: "The lawsuit against MP3.com has nothing to do with MP3 technology. It has to do with MP3.com, the company, taking music they don't own and haven't licensed to offer new services to make money for themselves. And there is nothing illegal in my saying so."

That suit was dropped six weeks ago, a representative of MP3.com confirmed.

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