Barry Willis

Bertelsmann may escape the legal wrath of its music industry peers, thanks to a decision rendered by Germany's top court on July 25. The Federal Constitutional Court in Berlin ruled to block delivery of a $17 billion lawsuit brought by other members of the recording industry over Bertelsmann's financial support of Napster. The block is good for at least six months and could be permanently renewed upon full examination of the lawsuit. Bertelsmann has already filed in US federal court in New York to have the suit dismissed.

Loudspeaker manufacturer B&W has been extremely aggressive in the past two years in reining in abuses of its dealer agreements. Last year, the company cut off many dealers and stocking distributors in an attempt to tighten control over its distribution. Now, as a result of a program announced November 22 by KnowledgeLINK, many B&W dealers will be able to take sales online in complete compliance with their dealer agreements. Rotel dealers are also participating.

The year 2001 was a bleak one for the music industry. Of the major labels, only Universal Music Group managed to turn a profit.

At least one media conglomerate has seen the light. In a surprise move, German giant Bertelsmann AG broke ranks with the music industry and settled its copyright-infringement lawsuit with embattled Napster, in effect becoming the startup's tentative partner. The deal, reached on October 31, could mark the real beginning of the music industry's move into the Internet age. Bertelsmann is the parent organization of Bertelsmann Music Group (BMG), one of the world's major music labels, as well as online music retailer CDnow.