e.Digital Corporation (fka EDIG)

[Tinroad]

Napster Turns the Tables on Major Labels
http://news.webnoize.com/item.rs?ID=14423

October 11, 2001 - Yesterday we wrote that we thought the record labels don't want Napster to die. But today we're not so sure.

In court yesterday Napster successfully turned a federal judge's scrutiny from its alleged copyright violations to possible antitrust violations by the soon-to-be-launched major label-backed subscription ventures. Napster said its licensing agreement with MusicNet has an exclusivity clause that specifies it can not make a separate agreement with Pressplay. Napster attorney Celia Barenholtz claimed that the record labels have misused their copyrights, thus forestalling their right to enforce them.

Patel's attention to the matter could fuel ongoing federal antitrust investigations into MusicNet and Pressplay. If Barenholtz' assertions cause more antitrust watchdogs to move in for closer sniffing around, the label groups may wish Napster had bitten the dust long ago.