Bertelsmann finally ends legal dispute over Napster
Following settlements worth millions with various record labels, Bertelsmann has now also reached an agreement with the U.S. Music Publishers Association in the Napster case. Bertelsmann was accused of causing billions in damages to the music industry by providing loans to Napster.
The German media group Bertelsmann has finally settled its legal dispute with competitors over the once illegal music sharing platform Napster. Bertelsmann had granted loans amounting to 80 billion dollars to the then still illegal file-sharing platform. According to the Gütersloh-based company, the aim was to pave the way for Napster to become legal so that it could be taken over in a second step. From the point of view of its competitors, however, Bertelsmann kept it artificially alive with its loans and thus caused the music industry billions in damages.After reaching settlements worth millions with the record companies Universal, Warner Music and EMI, Bertelsmann has now also reached an agreement with the American Music Publishers Association NMPA, as reported by SDA on Monday. This brings the legal dispute to a final conclusion. However, as this was a class action lawsuit, the agreement still has to be confirmed by a court, the music publishers' association NMPA announced in New York.
The competitors from the music industry had originally sued Bertelsmann for damages in the amount of 17 billion dollars. However, the parties have agreed not to disclose the amount of the settlement to the music publishers. Observers assume that Bertelsmann will have to pay at least 130 million dollars to the publishers. This would bring the total amount of Napster compensation to date to around 400 million dollars. In addition, there are further sums in the millions for legal fees.
The competitors from the music industry had originally sued Bertelsmann for damages in the amount of 17 billion dollars. However, the parties have agreed not to disclose the amount of the settlement to the music publishers. Observers assume that Bertelsmann will have to pay at least 130 million dollars to the publishers. This would bring the total amount of Napster compensation to date to around 400 million dollars. In addition, there are further sums in the millions for legal fees.
