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iTunes and other music stores face legal action

Stephen Withers
Friday, 25 May 2007 13:49

Business IT - Technology

Apple, AOL, Microsoft, Napster, RealNetworks, Yahoo and other online music retailers have been drawn into a dispute between a small record label and majors Universal and Warner.

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According to AppleInsider, Dawg Music alleges Universal and Warner have arranged online distribution of its catalogue without obtaining consent, and without paying royalties.

The eight big download services are involved because they have allegedly been selling unsanctioned copies - if Universal and Warner hadn't obtained the necessary rights from Dawg, they couldn't pass them on the online music stores.

If the court agrees that the contracts between Dawg and Universal and Warner don't cover online distribution, the big labels and the download services could face a combined bill of $1.5 million for each of the works involved.

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