Class Action Giant Sues Labels
Class Action Giant Sues Labels
One of the most popular online sales industries that has grown exponentially over the past few years is that of digital music sales. With the increasing demand for online music, major music labels began offering online music downloads and CDs to compete with such Internet music pioneers as Napster. However, as of March 9, a class action lawsuit has been filed accusing major music labels, such as Sony BMG, Universal Music and Time Warner, of fixing prices for Internet music downloads. William Lerach, San Diego attorney who filed the suit, claimed at least five major music labels “fought together to keep the online music market from emerging, and then ‘conspired to fix and maintain’ music prices”, once online services like Apple’s iTunes (www.apple.com) became increasingly successful.
The lawsuit stemmed from the U.S. Department of Justice investigation into pricing of online music and the collusion between the labels on how music is sold over the Internet. While it seemed until recently the only problem with online music sales was alleged “illegal downloads” where programs allowed downloaders to obtain music files without paying any fee at all, there is now a much more serious problem on the horizon. The suit filed by Lerach was on behalf of eleven plaintiffs who purchased music online, and for “anyone who has paid inflated prices for music”. New York Attorney General Eliot Spitzer launched a similar investigation into online music pricing and more can be read about Spitzer and the Department of Justices explorations in DOJ Probes Music Pricing.
1 Comments:
I think that artists have a right to protest sites like Napster. While it doesn't seem that many of them are in need of money that badly, they work hard to create music that their fans can enjoy, and it doesn't seem right that they shouldn't get compensated for it. When we download files illegally, we are completely circumventing the artists who created them, and we are not giving them credit for their work. I would not object to having a fixed cost for downloadable mp3 files. I use iTunes a lot, and, most of the time, the CDs I download are cheaper than they would be in the store anyway. I'm getting a deal, and the musicians that I listen to are still making money and getting recognition. What's wrong with that?
Post a Comment
<< Home