Bertelsmann Targetted in Lawsuit.

Written by tinfoil on Friday, 21 February 2003 18:07

A group of music publishers are targetting Bertelsmann (parent of BMG) in a lawsuit that contends the company prolonged Napster's existance, allowing for more music to be illegaly traded.

The group alleges Bertelsmann "was fully aware of the critical role its funding played in facilitating infringement by Napster users" and therefore "systematically participated in, facilitated, materially contributed to and encouraged" [illegal music file swapping].

The publishers say that Bertelsmann had in their power the ability to shut Napster down completely, but failed to do so. They contend that rather than shutting the service down, Bertelsmann proffited from keeping it open.

This lawsuit may break ground in allowing companies that financially support file swapping services to be sued in helping to prolong music piracy. This may even include companies that advertise on file swapping services.

Plaintiffs named in the New York lawsuit include songwriters Jerry Leiber and Mike Stoller who defined the R&B and pop charts in the early 1960s, penning such megahits as "Hound Dog" and "Stand By Me," with Stoller supplying the catchy music and Leiber the cheeky lyrics. Publishers Frank Music Corp. and Peer International Corp., represented by The Harry Fox Agency, also are named plaintiffs in the case. The group is seeking "statutory damages in an amount not less than $17 billion.

The lawsuit also seeks class action status to represent all music publishers whose songs were swapped on Napster.

Add this page to your favorite Social Bookmarking websites