The My.MP3.com service was launched in January 2000. The company built up a library of popular CDs, copied them onto a server accessible from its web site, and invited subscribers to customise and download the music files from any location. In an attempt to avoid copyright infringement, subscribers were required to either demonstrate that they already owned any of the CD albums from which they wanted to download MP3 format tracks or purchase the CDs from an on-line retailer co-operating with MP3.com.
District Judge Jed Rakoff has already ruled that the company violated the copyrights of record companies by offering music on-line without permission. This week’s case is for Judge Rakoff to determine whether or not Robertson and other senior executives at MP3.com knew that the service violated copyright law, which will affect the level of damages awarded in the case.
Four of the five major record companies bringing the case have settled with MP3.com since Rakoff’s initial ruling; only Universal Music Group remains.
Robertson said that by making users of the service prove ownership of CDs, it was a means of making sure there was compensation for the copyright owners. He argued that careful consideration and planning went into the system before it launched. He demonstrated the system in court on Monday, including the site’s copyright warning to consumers. Rakoff questioned whether users would actually read what he described as a “boilerplate, five-page, single-space legal agreement.”
If Universal convinces Rakoff that Robertson and others knew the service was infringing copyright, MP3.com could face fines of $150,000 per violation. If this cannot be shown, the company could still face fines of between $750 and $30,000 per violation.