MP3.com Settles Suits with Warner, BMG MP3.com Settles Suits with Warner, BMG Paul Jones
MP3.com's settlement with two of the five major record labels that brought forth copy-infringment suits last January boded well for its stock trading Friday. Shares for the online music provider shot up 35 percent, or $6, to 23 1/4 in pre-opening trading.
Final terms of the settlement have not been disclosed. However, Reuters reported that MP3 will pay Warner and BMG between $75 million and $100 million to settle their claims.
The resolution permits MP3 to include songs from Time Warner's Inc.'s Warner Music Group and BMG Entertainment in its database.
"The settlement agreement clearly affirms the right of copyright owners to be compensated for the use of their works on the Internet," said Paul Vidich, Warner Music Group executive vice president, strategic planning and business development
Further, WMG announced that it has entered into a North American license with MP3.com for use of WMG-controlled recordings on My.MP3.com's Beam-It and Instant Listening software services. These services allows users to insert copies of CDs they already own into their My.Mp3.com Music Manager.
