|Universal Music Group Sues MP3.com|
|Home Theater News Music - Download Technology News|
|Written by AVRev.com|
|Monday, 11 September 2000|
Napster isn’t the only online music site that is in hot water over copyright infringement issues. MP3.com, one of the largest music sites on the Internet was just ordered to pay a hefty fine of approximately $250 million to Universal Music Group. The lawsuit, filed by Seagram’s owned Universal claimed that MP3.com copied 80,000 Compact Discs onto their servers to create their "My MP3.com" system and 5,000 of these CD’s copyrights are owned by Universal Music Group.
Rather than the $150,000 per CD they were attempting to obtain per CD, U.S. District Judge Jed Rakoff chose to lower the total to $25,000 per title. This ruling comes approximately five months after MP3’s settlements with other major music companies Time Warner Inc., Sony Corp., Bertelsmann and EMI Group that were rumored to be as high as $20 million each. Universal chose a more aggressive approach and if MP3’s current appeal does not to prove successful, it looks as if MP3 will have to pay up.