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Music industry wins copyright case against MP3.com



Music industry wins copyright case against MP3.com

                           NEW YORK (April 28, 2000 1:15 p.m. EDT
                           http://www.nandotimes.com) - A judge on Friday
found the online music service MP3.com liable for infringing the
copyrights of the Recording Industry Association of America.

                           The brief order by U.S. District Judge Jed S.
Rakoff was a blow to the San Diego-based company that allows users to
instantly hear music and add their personal music to a play list.

                           Michael Carlinsky, representing MP3, said the
company was considering an appeal. "There's a lot of fight left in this
case," he said. "This is round one."

                           But MP3.com Inc. shares dropped 33 percent, or
$3.87 1/2, to $7.75 a share in midday trading on the Nasdaq Stock Market.

                           The recording industry, which includes most of
the nation's record companies, had argued MP3.com was not authorized to
use the music because it does not own it and has not obtained permission
from recording companies.

                           Lawyer Katherine Forrest, representing Warner
Brothers Records Inc., called it "a straightforward case of copyright
infringement."

                           It was not immediately clear exactly how the
ruling would affect MP3.com or its practices on the Internet.

                           "We believe that the conduct ... should cease,"
Forrest said. "Now we move on to the next phase."

                           The next phase in court will determine damages
and other relief. 

                           The judge said in a one-page order he will
explain the reasoning behind his ruling in a written decision to be issued
in the next two weeks.

                           The lawsuit had claimed that MP3.com's Instant
Listening Service and Beam-it violate copyright laws. Instant Listening
Service allows customers to listen to a CD after they have purchased it
while Beam-it is a program allowing users to add their own CDs to their
MP3.com personal playlist online.