1709 Blog: for all the copyright community

Friday, 11 May 2012

MP3 Tunes files for bankruptcy


MP3tunes, the cloud locker music service that has been engaged in a long and costly lawsuit with EMI, has filed for bankruptcy in federal court in San Diego. In court papers, it listed $7,800 in assets and $2.1 million in liabilities. MP3tunes was founded by Michael Robertson, the web entrepreneur who in the 1990s was one of the first to turn digital music into a big business, with MP3.com.

Last year, the Southern District of New York District Court held that the MP3tunes’ model did not violate copyright itself and was protected by the ‘safe harbour’ provisions of the DCMA - but the company, a number of executives and Mr. Robertson personally faced liability for individual songs uploaded without permission and for ‘contributory infringement’. EMI appealed the ruling, and hearings were scheduled to begin next week.

In a statement, an EMI spokesman noted that despite the bankruptcy, Mr. Robertson was still a defendant in the case – a potentially damaging claim as EMI have alleged Robertson personally loaded infringing material onto the service.


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