MusicNet Switches On Delivery System
In a step forward for legally sanctioned digital music on the Internet, MusicNet -- a joint venture of AOL Time Warner, Bertelsmann, EMI Group and RealNetworks -- on Thursday announced the launch of its music delivery system.In a step forward for legally sanctioned digital music on the Internet, MusicNet -- a joint venture of AOL Time Warner, Bertelsmann, EMI Group and RealNetworks -- on Thursday announced the launch of its music delivery system. MusicNet, which will not offer content directly to consumers, is making its technology available to distribution partners AOL Time Warner and RealNetworks. The pair will incorporate MusicNets technology into future consumer offerings. MusicNet is providing music content from BMG, EMI, Warner Music Group and Zomba Recording.
Napster, the embattled music sharing startup, is also licensing content from MusicNet but it is still in the process of negotiating rights and settling lawsuits with the music industrys largest companies. Earlier this week Napster reached an agreement with associations representing U.S. music publishers and songwriters, under which Napster will pay $26 million in damages for past "unauthorized uses of music." Napster also will pay an advance of $10 million for future licensing royalties. Napster, which was forced by a court order to suspend its free file-swapping service in July, still faces copyright-infringement lawsuits by the major music labels, which CEO Konrad Hilbers said, the company is actively trying to settle.