Supreme Court Rules Suit Against Labels Can Move Forward
January 10, 2011 at 8:20 AM (PT)
The four major music labels were handed a defeat by the U.S. Supreme Court, refusing to block a suit accusing them of conspiring to fix Internet song prices, reports BLOOMBERG NEWS. "Units of SONY CORP., VIVENDI SA, WARNER MUSIC GROUP CORP. and EMI GROUP LTD. argued unsuccessfully that the allegations in the consumer complaint aren't sufficient to suggest the companies engaged in misconduct. A federal appeals court in NEW YORK said the allegations were enough for the case to go forward, and the Supreme Court TODAY left that ruling intact."
The original complaint was filed against MUSICNET and PRESSPLAY, which are services the music companies started in 2001 to sell songs online.
"The complaint alleges the services charged unreasonably high rates -- a combined $240 per year in subscription fees -- and imposed unwarranted restrictions, barring customers from transferring songs to iPODS and other portable digital music players," wrote BLOOMBERG.