AfterDawn: Tech news

Justice Department takes a closer look at online music industry

Written by Petteri Pyyny (Google+) @ 15 Oct 2001 7:16

Justice Department of U.S. has intensified its investigations of major record label -backed online music services, MusicNet and Pressplay, Wall Street Journal writes.
Last week, Napster told in court (in its hearings in Napster vs. RIAA case) that when it signed an agreement with MusicNet in order to license its music to up-coming legal Napster service, the contract had a clause that says Napster can't license music from other major record label services like from Pressplay. This has obviously made alarming sounds in Justice Department who tries to investigate whether or not major labels have violated competition laws in their licensing policies.

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