RIAA Statement Concerning MP3.Com's New Services

Washington, DC - January 21, 2000 - The RIAA has today filed copyright infringement litigation against MP3.com, calling for a halt to MP3.com's new services, Instant Listening Service and Beam-it. The foundation on which these services are built is an unauthorized digital archive with the most popular and valuable copyrighted sound recordings in the world -- music that is not owned by MP3.com. MP3.com constructed that database without making the slightest attempt to obtain permission from the copyright owners to do so. This is a blatant infringement of rights, upsetting not only to record labels, but also large numbers of artists, retailers and technology companies who have business agreements with copyright owners. The RIAA has received calls from many interested parties telling us that this is fundamentally unfair and simply wrong. Frankly, it's astonishing that a publicly-traded company would behave so recklessly.

The recording industry remains committed to developing new ways to use technology to deliver music to consumers, as evidenced by the daily announcements of new offerings and business partnerships. But the issue here is not what consumers can do with their music, or the MP3.com technology. The issue is whether the company, MP3.com can build a business based on the flagrant infringement of one of the most fundamental rights of copyright owners. We believe long-established U.S. law says they cannot.

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The Recording Industry Association of America (RIAA) is the trade organization that supports and promotes the creative and financial vitality of the major music companies. Its members are the music labels that comprise the most vibrant record industry in the world. RIAA® members create, manufacture and/or distribute approximately 85% of all legitimate recorded music produced and sold in the United States.

In support of this mission, the RIAA works to protect the intellectual property and First Amendment rights of artists and music labels; conduct consumer, industry and technical research; and monitor and review state and federal laws, regulations and policies. The RIAA® also certifies Gold®, Platinum®, Multi- Platinum™ and Diamond sales awards as well as Los Premios De Oro y Platino™, an award celebrating Latin music sales.