(UPDATED) Online music locker MP3tunes.com has filed for bankruptcy protection. Led by MP3.com founder Michael Robertson, MP3tunes has been the target of an ongoing aggressive lawsuit by EMI. In court documents, the company listed $7,754 in assets and $2.108,966 million in liabilities.
EMI Records sued MP3tunes alleging massive infringement. Four years later a judge ruled that "MP3tunes did not promote infringement". But EMI has repeatedly asked that ruling be re-examined.
"EMI spent an estimated $10 million dollars with multiple law firms to arm their attack against MP3tunes in an attempt to thwart unlicensed personal lockers," according to Robertson. "They know it's difficult if not impossible for startups to fight long costly legal battles... This happened with the music search engine Seeqpod, Muxtape, Favtape and many others that have quietly faded away."
UPDATE: EMI says bankruptcy won't protect MP3tunes from copyright suit and they will prooceed with the case, according to CNet. Robertson also faces personal liability in the lawsuit.