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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