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RIAA motion against MP3.com denied

A judge says MP3.com should have to pay damages to the record industry based on the CD, not the song. And that's good news for the online music site.
Written by Anna Matthews, Contributor
A federal judge refused to award a summary judgment against MP3.com Inc. in its closely watched legal battle with the recording industry, a decision that could limit the damages the online music firm will ultimately have to pay.

The major record labels earlier this year sued MP3.com (mppp) for making digital copies of thousands of compact disks without permission and making the copies available to users of its Web site. The same judge in late April ruled MP3.com was liable for infringing on the record labels' copyrights.

The record companies had requested that U.S. District Judge Jed S. Rakoff in New York award them a summary judgment that would peg damages in the case to each song MP3.com has used without permission, rather than each CD. That would dramatically increase MP3.com's potential liability, because there are about a dozen songs on each CD.

But Judge Rakoff refused the labels' request, a ruling that appeared to be at least a setback for the labels in their attempt to collect a big damage award from San Diego-based MP3.com.

Judge Rakoff said he will later fully explain his decision in a written opinion. It wasn't clear whether or not he will revisit the issue when the case goes to trial on Aug. 28.

A spokesman for the Recording Industry Association of America, which represents the major labels, said the group "couldn't really comment intelligently until we see the judge's decision."

A spokesman for MP3.com said the company believed the judge will use a CD as the "unit of measurement in any statutory damages." "We feel it's a victory for MP3.com," the spokesman said.

MP3.com has settled with three of the major music companies, but not with Sony Corp.'s (sne) music units, Seagram Co.'s Universal Music Group, or music publishers.

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