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Now It's the Indies Suing MP3.com

Brad King Email 11.17.00

MP3.com isn't in the clear yet.

CEO Michael Robertson and company had just under 24 hours to celebrate the settlement of its last copyright infringement lawsuit with the major record labels and publishers before getting served with yet another lawsuit.

Santa Monica's Engstrom, Lipscomb & Lack filed a class-action copyright infringement suit on behalf of the independent Unity Entertainment Corporation and other unnamed independent labels.

Lead lawyer Walter Lack wasn't available for comment. Robertson responded to the suit with a one-paragraph release.

"On behalf of both consumers and artists, we are disappointed to receive this complaint, particularly in light of the strides we have made in securing licensing agreements from now all five of the major record labels," Robertson said in the statement.

"We continue to firmly believe that my.mp3.com and its technology infrastructure serves to empower artists and gives consumers the benefit of listening to their own music anywhere and at any time."

There were no specifics on the number of songs involved in the suit, nor the damages being sought by the plaintiffs.

While the new lawsuit could prove troublesome for the embattled music company, the actual damages awarded in this suit should prove to be considerably less than what it faced in its previous lawsuits.

"The lawyers must believe they already have a judgment behind them, but as a matter of proof they still have to prove their case in courts," said Duff Berschback, an entertainment lawyer at Nashville's Benson & Associates. "Then, the damages issues comes up again as well. The numbers were so big because Universal was claiming so many copyrights were infringing."

The problem facing MP3.com, said Berschback, is that other plaintiffs can be added as the trial proceeds, which could rack up the damages. The damages awarded in Universal Music Group's suit were so high because the label claimed over 4,000 violations. One small label might not have much effect on MP3.com, but a number of suits could quickly add up.

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