MP3.com's Move to Copy CDs Stirs Debate

By Sushuma January 29, 2000 6:38 PM

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MP3.com has made its David and Goliath struggle to shake up the recording industry the cornerstone of its business model.?The company wants nothing less than to break the grip of established record companies over artists and listeners through direct distribution of digital audio tracks over the Internet.?But legal experts, stock analysts and other companies in the burgeoning online music industry say MP3.com may have taken the tactic one step too far this month when it launched two new services offering customers access to their CD collections online.?Having focused on creating a platform for relatively unknown artists on its Web site, MP3.com's Instant Listening and Beam-it services catapulted the company into a new realm -- that of dishing up major label artists it didn't have access to before.?Some observers say that MP3.com committed a grave mistake by failing to deal with the recording industry before the launch and moving ahead without discussing licensing conditions.?In doing so, the company crossed swords with the powerful Recording Industry Association of America (RIAA), which promptly filed suit alleging myriad copyright violations, exposing the company to potentially billions of dollars in damages.?Read more ...?

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