Feeds

Class action for music downloads

Too expensive

The Power of One eBook: Top reasons to choose HP BladeSystem

San Diego lawyers and class action specialists Lerach, Coughlin, Stoia, Geller, Rudman and Robbins are taking action against the big music labels who they accuse of conspiring to fix the price of music downloads.

William Lerach's suit alleges Bertelsmann, EMI, Time Warner and Universal worked together to fix the price of downloads. The suit claims the major labels "use their market power to coerce online music retailers to sign "most favored nation" agreements that specify that the retailers must pay each of the defendant labels the same amount. By setting a wholesale price floor at $0.70 per song, defendants have fixed and maintained the price of online music at supracompetitive levels."

The suit also claims that the music industry's initial online offerings were deliberately rubbish and designed to damage the nascent market for downloads. Red Herring says Musicnet and pressplay "were not serious commercial ventures, but rather attempts to occupy the market with frustrating and ineffectual services in order to head off viable Online Music competitors from forming and gaining popularity after Napster's demise", according to the suit. More details here.

The case will be closely watched by regulators elsewhere. Late last year it emerged that New York Attorney General Eliot Spitzer was investigating the price of downloading music.

Lerach, Coughlin, Stoia, Geller, Rudman and Robbins specialises in class action cases - it represented 15 customers who took anti-trust action against Microsoft. ®

Top three mobile application threats

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.