Out-Law / Your Daily Need-To-Know

A group of songwriters and music publishers has filed an objection to the planned purchase of Napster’s assets by German media giant Bertelsmann, according to a report by the Los Angeles Times. The objection will be discussed at a hearing over the Bertelsmann offer, scheduled for today in a federal bankruptcy court in Delaware.

German media giant Bertelsmann has long expressed an interest in buying the bankrupt file-sharing service’s assets. It recently upped its bid by $9 million, bringing its total bid to over $100 million. However, included in that figure is the sum of $85 million in debts owed by Napster to Bertelsmann.

According to the LA Times report, the songwriters are objecting to the transaction because of Bertelsmann’s dominant position and Napster’s “unlawful actions”, and are claiming that the $85 million should not be included in the bid.

Napster’s creditors failed to find other party to offer the asking price of $25 million.

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