In the wake of this agreement a music producer, Matthew Katz, filed suit on 22nd November in the US District Court in San Francisco against Bertelsmann.
Matthew Katz in his suit claims that Bertelsmann's e-commerce unit is enabling Napster to infringe on the copyright in recordings by financing music sharing activities. Katz believes that Bertelsmann is party to illegal behaviour, through its investment of substantial sums of money which he believes to be in the region of $50 million and through its support and guidance for Napster's future benefit, it is promoting Napster. He argues that this contributes to the unauthorised copying and distribution of music. Katz is also seeking an account of all profits made by Bertelsmann and Napster as a result of the purported infringement. Katz has a separate suit pending against Napster.