MP3.com Settles with Two Major Labels, Stock Surges
One battle in the copyright war is over. <A HREF="http://www.mp3.com/">MP3.com</A> announced Friday, June 9, that it has reached a settlement with <A HREF="http://www.bmg.com/">BMG Entertainment</A> and <A HREF="http://www.warnermusic.com/">Warner Music Group</A>, two of the music industry’s "Big Five" that had sued the online music company for copyright infringement. Although MP3.com will have to pay some serious damages---possibly as much as $100 million once the other litigants resolve their cases---it gained a licensing agreement with the two major labels that could be worth far more in long-term business. "It's a heck of a price to pay to get the keys to the kingdom," analyst Phil Leigh told the <A HREF="http://www.wsj.com/"><I>Wall Street Journal</I></A>, "But now they have the crown jewels."