MusicNet, Pressplay "look bad, sound bad and smell
bad":
A federal judge brought an abrupt end to a run of
record-industry court victories over Napster on Friday
when she ruled that the embattled file-sharing service
could seek evidence that the record companies colluded to
monopolize the digital music market. Were Napster to prove
such illegal collusion, it could invalidate the lawsuit
that derailed its online music business last year. At
issue here are Pressplay and MusicNet, two joint ventures
established by several of the big five record companies to
distribute music over the Internet. "The evidence now
shows that the plaintiffs have licensed their catalogues
of works for digital distribution in what could be an
overreaching manner," Judge Marilyn Patel wrote in her
ruling. "The evidence also suggests the plaintiffs' entry
into the digital distribution marketplace may run afoul of
antitrust laws... Even on the undeveloped record before
the court, these joint ventures look bad, sound bad and
smell bad. Even a naif must realize that in forming and
operating a joint venture, [the companies] must
necessarily meet and discuss pricing and licensing,
raising the specter of possible antitrust violation."
"MusicNet did not suddenly appear full-blown from the head
of a fictitious entity," Patel added. "[The labels] cannot
hide behind the shell of a joint venture to protect
themselves from misuse claims. The court views with great
suspicion claims of ignorance as to MusicNet's
activities."
http://news.com.com/2100-1023-843521.html
http://www.newsbytes.com/news/02/174737.html
http://www.theregister.co.uk/content/6/24178.html
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"RazorPop, Marc Freedman" <marc@...>
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