MP3.COM BOUNCES BACK, PROMISES RETURN OF MY.MP3.COM

Just like Jason, the hockey-masked killer in "Friday The 13th," nothing can kill MP3.com.

The company plans to reactivate its My.MP3.com online music service in the next few weeks, despite losing a willful copyright infringement suit filed by Universal Music Group and reaching settlements with the other four major labels.

On Wednesday (9/6), a federal judge in New York ruled MP3.com willfully violated copyrights, awarding UMG $25,000 per CD. The penalty could reach as much as $250 million. MP3.com plans to appeal the decision.

CEO Michael Robertson said he was puzzled by UMG's refusal to reach a settlement: "We were disappointed. We not only settled with the other four plaintiffs, but we got a license going forward. This is great technology and when we had a chance to sit down with the parties involved, they got excited. It is very disappointing that Universal doesn't see the benefit or for whatever reason doesn't want to settle this and forced this into a legal showdown."

Robertson said the terms discussed with UMG were similar to the ones agreed to by the other four record labels. MP3.com has reserved $150 million to pay for settlements with record labels and a separate group of music publishers who were also party to the lawsuit.

Robertson is optimistic a settlement could eventually be reached with UMG. "It's possible, but challenging because there is a willfulness judgment against us that doesn't reflect the company's actions. To have the company's and my actions in particular branded as willful is disconcerting and that has added another challenge to getting a settlement."

To access their music over the Internet, My.MP3.com members now must first prove they paid for the recording by briefly inserting a compact disc into a computer's CD-ROM drive.

"Letting people listen to their own CD collection is a fair use," maintains Robertson.