EMI Grants MP3.com License for My.MP3.com Service
SAN DIEGO and LOS ANGELES, July 28 -- EMI and MP3.com (Nasdaq: MPPP - news) announced today that they have entered into a settlement of claims under the copyright infringement suit originally brought by affiliates of EMI and other record labels against MP3.com, in conjunction with MP3.com's My.MP3.com system. At the same time, EMI announced that it has entered into a non-exclusive, North American license with MP3.com for use of EMI-controlled recordings on My.MP3.com's "Beam-It(TM)" and "Instant Listening(TM)" software services. These services are designed to allow, among other things, users to insert into their My.MP3.com Music Manager (i.e. personal locker) copies of CDs they already own."EMI's Internet strategy is to create innovative, convenient and attractive ways for fans to access their favorite artists' music," said Jay Samit, senior vice president, new media, EMI. "This settlement ensures that copyright owners and creators are compensated fairly."
"We are thrilled to have the opportunity, by virtue of this licensing agreement, to demonstrate how a responsible approach to intellectual property that is available to consumers on the Internet, benefits artists, record companies and consumers," remarked Robin Richards, president of MP3.com and the company's chief negotiator during settlement talks. "We want to do everything we can to satisfy the overwhelming consumer demand for access to their music in cyberspace -- responsibly, quickly, and through collaboration between record labels and digital music service providers. This agreement is a stellar demonstration that it's all beginning to happen. Thank you, EMI."
Michael Robertson, chairman and chief executive officer of MP3.com, stated, "EMI has once again demonstrated its grasp of the Internet and the difficult issues with which we are faced. Today, a signal was sent to consumers that the music they already own will be made available to them through the My.MP3.com service. A business model where artists, copyright holders and record companies can potentially monetize their music digitally and in an accretive manner is finally emerging."
About MP3.com
MP3.com, Inc. has created what it believes is a unique and robust technology infrastructure for the storage, management, promotion and delivery of digital music. As the Internet's premier Music Service Provider (MSP), the company is dedicated to providing consumers with anytime, anywhere access to their music using any web-enabled device. The company's web site hosts what it believes is the largest collection of digital music available on the Internet, with more than 515,000 songs and audio files from over 81,000 digital artists and record labels. Dedicated to growing the digital music space, the company's products and services include on-demand Subscription Music Channels, an innovative Retail Music Program, a Syndicated Radio Division and others. Additionally, through the company's MSP initiative, MP3.com is partnering with a variety of forward-looking technology companies to expand its digital music strategy. MP3.com common stock is 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 EMI
EMI is the world's third largest music company with presence in nearly 70 countries.
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 EMI, including whether any of the music that consumers already own will be made available through the My.MP3.com service, actions intended to be taken to satisfy consumer demand for access to music in cyberspace and the ability of artists, copyright holders and record companies to monetize their music digitally. 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 EMI; MP3.com's current litigation proceedings, including without limitation the inability to reach settlement with all parties to such litigation proceedings; 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 and it's most recent report on Form 10-Q.