MP3.COM TO PULL COPYRIGHTED CONTENT FROM SERVICE
The service's database of major-label music—encoded from CDs for streaming by users—is the basis of RIAA litigation against it. A federal judge ruled on 4/28 that My.MP3.com indeed violates member copyrights.
"We regret the need to take this step, which inconveniences more than 500,000 My.MP3.com account holders," reads a statement from President/CEO Robin D. Richards. "We respect the court's decision and further want to demonstrate our good faith and strong desire to achieve an expeditious business resolution."
MP3.com's licensing deal with BMI, announced last week, was the first indication of progress between the online company and the music industry. Negotiations with the labels are ongoing.
"MP3.com is committed to work with the major labels through ‘inclusion' and through idea exchange, taking from one another the best each has to offer, in order that we swiftly deliver on the promise of a stable, responsible digital music model," reads a message from Robertson to users.
Some observers believe MP3.com faced a possible injunction on the service and is merely putting a positive spin on the inevitable. But others see this as an important development.
"I think it's a step in the right direction," commented Artemis Records head and industry veteran Danny Goldberg of the move. "Even though I have an independent label, I still think it's good that copyrights are respected."
Rumors that the My.MP3.com service was going to be renamed Their.MP3.com went unconfirmed.
Even though MP3.com waited until after market close, the company's stock dropped 7/8 to close at 11 7/8. But it was a bad day all around for the Nasdaq, which fell 200.38 points in its third straight day of decline. Poor performance by market leader Intel and networking giant Cisco Systems, as well as interest rate worries, fueled the decline. The index has lost 11% in three days.
Although the Nasdaq was up 75 points in early trading this morning, MP3.com's stock continued to decline, dropping7/16 to 11 7/16 at presstime.
