American Green Inc (ERBB)

[neilbolton]

And no, the motivation of "principal" doesn't wash. BMG is a corporation, not a "moral" entity. Their motivations are the financial bottom line.

I agree that their motivations are financial, but as I explained to Greg a week back, by principle I meant that they are making a statement that when you enter an agreement with Sony-BMG, you fulfil the terms, otherwise they will come after you, even if you appear to have no assets. The financial reward to them may not come from beating SunnComm in the courts, but by detering other 'partners' from not acting properly.

IMO, when Sony-BMG entered into an agreement with SunnComm, they provided financial assistance to SunnComm, over and above license fees paid to SunnComm, to ensure they developed the product to their specs and also to enable SunnComm to put in place certain business practices, such as product indemnity, quality control procedures etc. I believe that they discovered after the fiasco, that many of the things they assumed had been done, were not done, hence the lawsuit.