SONY FALLS IN LINE WITH MP3.COM
The latest move confirms stories first reported by Hitsdailydouble.com, which has been on top of the label-MP3.com negotiations since they began (hitsdailydouble.com 8/15, 7/25, 6/6).
While details of the latest deal were unavailable, highly placed sources said terms of the Sony agreement were similar to the ones already agreed to by BMG, WMG and EMI.
"It is clear that Sony Music Entertainment understands and embraces the Internet and values responsible technologies that excite consumers and reward content owners," proclaimed MP3.com ruler michael robertson',390,400);">michael robertson',390,400);">Michael Robertson in a release. "Also, they cut a deal with us."
Company President Robin Richards added, "This settlement and licensing agreement is a business resolution that we believe will positively impact the future of online digital music."
"Sony Music Entertainment strongly enforces its copyrights," noted Sony SVP Al Smith. "This settlement affirms and upholds the right of copyright owners to be paid for the use of their works on the Internet. And by 'copyright owners,' I mean us, not those foul-smelling freaks who actually make the music."
With Sony's accord, Universal Music Group remains the only holdout. UMG, reportedly, remains intransigent. Speculation abounds that this is partly because UMG still regards MP3.com as a competitor for Internet marketshare. However, questioners are questioning if Universal will now follow "suit" and make a deal, or will they see the action all the way through to court?
Since negotiations began in June after a judge's decision that MP3.com was guilty of copyright infringement, MP3.com representatives -- Robin Richards, Gary Gersh and Gary Stiffelman of Ziffren, Brittenham, Branca and Fischer LLP -- have been diligent in working with the majors towards a common future.
Negotiations between MP3.com and the majors revolve around a standard for streaming songs from the My.MP3.com site.
Most recently, EMI Recorded Music reached a settlement agreement with the online music service provider in July.
As part of that deal, MP3.com reportedly paid EMI $20 million, which includes payments for past copyright infringements and an advance on future licenses. Sources said this price tag was significantly boosted by EMI Music Publishing's market strength and EMI's length of term for the licenses.
EMI followed in the footsteps of BMG Entertainment and Warner Music Group, who in June became the first two major record congloms to ink.
Sources said the structure of the deals is similar. There are two primary points to the MP3.com-label pacts: past damages and advances on future licenses based on length of term, which tally $150 million. This sum will eventually be split in some predetermined way among those members of the Big Five and other smaller record and publishing companies that close deals with MP3.com.
Specifically, the licensing agreement requires the netco to pony up approximately 1.5 cents per track stored in a locker at My.MP3.com, and roughly 1/3 of a cent each time a song is streamed by any My.MP3.com user.
