Warner Music Group Grants MP3.com License for My.MP3.com Service
SAN DIEGO and NEW YORK -- June 9, 2000 -- MP3.com (Nasdaq: MPPP) and Warner Music Group (WMG) announced today that they have entered into a settlement of claims under the copyright-infringement suit brought by affiliates of the five major record companies against MP3.com, arising out of the launch of the My.MP3.com system late last year. At the same time, WMG announced that it has entered into a North American license with MP3.com for use of WMG-controlled recordings on My.MP3.com's popular "Beam-It" and "Instant Listening" software services. These services allows users to insert into their My.Mp3.com Music Manager (i.e. personal locker) copies of CDs they already own. WMG will share the monies received in connection with the settlement and license agreement with its artists in accordance with the terms of their agreements.Said Warner Music Group executive vice president, strategic planning and business development Paul Vidich, "This is an important moment for recording artists and copyright owners. This settlement ends an unfortunate period in our history with MP3.com. We are pleased that, having entered into a license agreement, MP3.com (www.mp3.com) can now move forward and offer Warner Music Group's recordings on its popular My.MP3.com system. The settlement agreement clearly affirms the right of copyright owners to be compensated for the use of their works on the Internet."
Said Robin Richards, MP3.com president and chief negotiator, "Our license agreement with Warner Music Group will put us in a better position to demonstrate how our robust technical infrastructure can enhance and stabilize the digital music space from a consumer-marketing, royalty-tracking and copyright-protection perspective. We look forward to collaborating with WMG over the coming years on many new and unique promotions."
Added Michael Robertson, chairman and CEO of MP3.com, "Throughout our negotiation, WMG was clear in its position that our entire approach to the use of recordings should be for the benefit of consumers, artists and copyright owners. The digital music space is still in its infancy. We look forward to working with WMG to expand its boundaries and are grateful to the entire WMG team for the insight and trust they've demonstrated and for making this opportunity possible."
About MP3.com
MP3.com allows users to access, manage, and listen to their personal music collection
anytime and anywhere in the world, using any web-enabled device or application.
MP3.com enables more than 67,000 artists to distribute and promote their music worldwide
while enabling consumers to conveniently access this expanding music catalog. Consumers
can search for, listen to and download music free of charge. MP3.com shares are
traded on the Nasdaq National Market under the ticker symbol MPPP. The company is
based in San Diego, California. For more information on MP3.com, visit www.mp3.com.
About Warner Music Group
Warner Music Group is home to some of the world's leading record companies, including
The Atlantic Group, Elektra Entertainment Group, Rhino Entertainment, London-Sire
Records and Warner Bros. Records, Inc. The company's Warner Music International,
with a roster of more than 1,000 artists, operates in 65 countries through a network
of 47 affiliates, 24 licensees and seven associated labels. Warner Music Group also
includes one of the world's leading music publishers, Warner/Chappell and WEA Inc.,
which is comprised of three companies, WEA Corp., WEA Manufacturing, and Ivy Hill.
Warner Music Group is a division of Time Warner Inc.
Statements in this press release that are not strictly historical are forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements include references to activities expected to occur in connection with MP3.com's settlement and license arrangement with Warner Music Group. These statements involve a high degree of risk and uncertainty, are only predictions, and actual events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include risks related to: implementation of MP3.com's license arrangement with Warner Music Group; MP3.com's current litigation proceedings, including without limitation the inability to reach settlement with all parties to such litigation; MP3.com's new and uncertain business model; acceptance of MP3.com's products and services; MP3.com's limited operating history, and MP3.com's rapid growth, as well as other risks detailed from time-to-time in MP3.com's reports to the Securities and Exchange Commission, including its report on Form 10-K for the year ended December 31, 1999.