EMI Sues Seeqpod & Favtape.com

Capitol Records LLC et. al. v. Seeqpod, Inc., No. 09 cv 1584 (S.D.N.Y. filed 2/20/09).

"The Seeqpod site and service are designed to, and do, encourage and facilitate the search for, and the unlawful production, distribution and public performance of, copyrighted sound recordings and the copyrighted compositions embodied therein. In response to a user's query for a particular recording or recording artist, SeeqPod's proprietary algorithims - which SeeqPod's CEO and founder, Kazian Franks refers to as SeeqPod's "targeted crawling system" - crawl the Internet specifically to locate and index unlawful MP3 files of copyrighted sound recordings and compositions. SeeqPod then formats and presents the results as direct links to those unlawful files. A click on any one of these links will automatically cause the recording and composition to be reproduced and performed, via "streaming" technology, on and via SeeqPod's own MP3 software "player."

Paragraph 48.

First Sale Doctrine & MP3s: Bopaboo

Bopaboo.

A new digital music service is getting lots of attention for proposing to help consumers sell their used MP3s in much the same way people once unloaded second-hand albums.

Bopaboo has generated splashy headlines recently for coming up with what on the surface seems like a good idea. Music fans have always exercised their first-sale rights, which under copyright law, allows them to sell their unwanted CDs, tapes, and albums without permission from the copyright owner. Why can't they do the same with digital music?

Cnet article.

MP3Tunes Update

Back in November, 2007, OTCS did a posting on a copyright infringement claim filed against MP3Tunes. (Posting here.) At the time, our hypothetical questions were ignored. (OTCS takes absolutely no position on the merits of the case or defense.)

So, we hadn't heard anything until a Tipster dropped us a line today:

"...just completed oral arguments on jurisdiction for the company and [MP3Tunes CEO Michael Robertson personally]."

CEO Michael Robertson's take on the issue of his personal liability is available on his website. ("The Record Label Wants My Minivan"; June 11, 2008).

Thanks Tipster. Please let us know what the court finds (e.g., send us a copy of the decision).

[Capitol Records Inc.; Caroline Records Inc.; EMI Christian Music Group Inc.; Priority Records LLC; Virgin Records America Inc.; Beechwood Music Corp.; Colgems-EMI Music Inc.; EMI April Music Inc.; EMI Blackwood Music; EMI Full Keel Music; EMI Golden Torch Music Corp.; EMI Longitude Music; EMI Virgin Music Inc.; EMI Virgin Songs Inc. v. MP3Tunes LLC; Michael Robertson. Filed S.D.N.Y. 11/9/2007; 07 CV-9931]

Chinese Firms Face the Music on Downloads

Wall Street Journal reports:

A Chinese court has agreed to consider copyright-infringement cases against two China-based Internet heavyweights that offer illicit music downloading, potentially pening Chinese companies to hefty damage claims they have previously dodged.

The music-industry lawsuits claim $9 million in damages against Baidu.com Inc., and $7.5 million against Sogou, the music-delivery service operated by Sohu.com Inc.

Ch-ch-ch-changes!

(a) U2 + LiveNation = a 12-year global contractual relationship (including concert promotion, merchandising and the band’s website; album distribution and publishing will still be handled by Universal...for now).

(b) Amazon + Grand Theft Auto IV = gamers able to download music discovered via the game's 150 song soundtrack and play on portable devices.

iTunes, So 5 Minutes Ago

Pepsi announced that it will offer 100 million free downloads from Amazon.com, marking a "change of teams" away from iTunes. The promotion will begin at the Super Bowl next month, and all songs will be in mp3 format (i.e., without DRM).

However, not all the majors are participating due to pricing issues, including UMG. Typically, Amazon pays labels approx. $0.70, but under the promotion record companies will be paid approx. $0.40 per song.

To quote Dave Chappelle, as Rick James "What did the 5 fingers say to [iTunes]? Slap!"

Sony Adds Catalogue to Amazon; Ups Competition with iTunes

Sony BMG became the last of the major labels to begin selling its music in mp3 format on Amazon.com. The deal includes the labels entire catalogue.

The result of the deal is two-fold. First, it increases Amazon.com's competition with Apple iTunes. Second, the music will be sold without digital rights management software, or DRM, nailing another coffin in an on-line music distribution model based on limiting user's experience with the media.

...and again, this is good for the consumer! More choice, more options, more freedom. It now seems inevitable that iTunes will need to lift its DRM software in order to offer consumers a competitive product.

Online Storage/Locker

This looks interesting: MP3tunes, a company that appears to store your already PURCHASED music on-line, sued by the recording industry. The company offers users a "locker" with unlimited storage and streaming of music, enabling users to listen to their music on any computer, anywhere.

If the user has already purchased the music, what's the problem here? OTCS, regrettably, has not yet read the complaint. However, OTCS assumes this is a section 106 copying claim. Is this what the Copyright Act should protect? How is this any different than a purchaser taking their Case Logic book of CDs from their home-stereo, to their car, to their friend's home, to the office etc.? Music is mobile, and once purchased in one-format (e.g., MP3, 8-track) users should be able to enjoy the music on the corresponding playing -- no matter where. Aren't the labels trying to double-dip?

[Capitol Records Inc.; Caroline Records Inc.; EMI Christian Music Group Inc.; Priority Records LLC; Virgin Records America Inc.; Beechwood Music Corp.; Colgems-EMI Music Inc.; EMI April Music Inc.; EMI Blackwood Music; EMI Full Keel Music; EMI Golden Torch Music Corp.; EMI Longitude Music; EMI Virgin Music Inc.; EMI Virgin Songs Inc. v. MP3Tunes LLC; Michael Robertson. Filed S.D.N.Y. 11/9/2007; 07 CV-9931]