COURTS DROP TVT BOMB ON MP3.COM

TVT is barking with the big dogs.

The indie label has won a partial summary judgement against MP3.com, similar to the copyright infringement ruling that Universal Music Group won against the music file-sharing portal. So similar in fact, that the same judge, New York U.S. District Court Judge Jed Rakoff, ruled in both cases. In the ruling the label will be able to collect damages for master and composition of each song from its catalog, assuming the validity of its copyrights. TVT can collect for the copyrights and the publishing rights. MP3.com disputed this matter arguing that the label should not be able to collect money twice for the same recording.

A court date has been set for March 26. TVT expects the proceedings will be to establish the statutory damages that will be awarded the label. Ten other independent labels have suits against the MP3.com.

"I don't take any joy in a lawsuit," said TVT head Steve Gottlieb of the legal action, "but my financial advisors at CSFB told me they'd love to work this into the next commercial."

In other MP3.com news, one of its insurers, Westport Insurance Corp., filed suit today. Westport is looking for a ruling that would allow them to not pay for losses in MP3.com's copyright infringement suits. MP3.com had asked for coverage for some of its losses and Westport refused to cover them. The insurance company is claiming that it doesn't have to pay because MP3.com broke copyright law, entered into settlements without the insurer's consent and misrepresented its business practices.