Publishers File Suit Against MediaNet

Several members of the National Music Publishers’ Association have filed a class action lawsuit against MediaNet seeking damages, a declaratory judgment and injunctive relief "to put an end to MediaNet's willful and ongoing copyright infringement". MediaNet delivers the downloads and tech that powers online stores for Yahoo!, HMV and others. Publisher plaintiffs include Sony/ATV, Peer International, Frank Music and MPL.

The suit argues that MediaNet was originally covered under a 2001 agreement when it was owned by record labels, the company has refused to enter into a new agreement since 2005 when it was bought by private equity firm Baker Capital in 2005.

The filing comes as the Copyright Royaly Board is in the midst of hearings to determine new mechanical royalty rates. Expect many more lawsuits as the value and importance of digital sales and music 2.0 services grows.  (more)