Thrown Out Music Industry Antitrust Suit Gets Thrown Back In

Bart Salisbury — Thu, 14 Jan 2010 15:51:50 -0600

After years of being preyed upon by the music industry, through the legal machinations of the RIAA, the hunted struck back with a lawsuit against the hunters alleging violations of U.S. antitrust law. In October 2008 the lawsuit was dismissed by a federal district court, but upon review the U.S. Second Circuit Court of Appeals has reinstated the lawsuit, and has returned it to the district court for further action.

The lawsuit against the music industry, including Bertelsmann AG, EMI Group, Sony Corp, Vivendi SA, and Warner Music Group Corp, alleged that they conspired to fix the wholesale price of downloaded music at 70 cents, and enforced their agreement through restrictive licensing arrangements. The suit was dismissed due to lack of evidence; a finding the Appeals Court reversed.

According to the Second Circuit Court, plaintiffs’ allegations were “sufficient to plausibly suggest” a price-fixing conspiracy existed, and there was “enough factual matter” to allow the case to go forward. The Circuit Court appears to believe that the music industry’s efforts to sell downloaded music, for example MusicNet and pressplay, were so lame the only way they could continue to exist is if something behind the scenes was propping them up. The Court concluded that “some form of agreement among defendants would have been needed to render the enterprises profitable.”

Christopher Lovell, an attorney for the plaintiffs, said “There was uncertainty in the law over the standards for pleading a price-fixing conspiracy. This decision goes a long way toward clarifying what the standard requires in a way that helps people who paid allegedly conspiratorial prices for digital music.” Lovell plans to seek class action status for the case, which Lovell says could affect millions of consumers.

Image Credit: RIAA

Is Sony Preparing for a Corporate Metamorphosis, Job Cuts?

Pulkit Chandna — Tue, 06 Jan 2009 20:00:07 -0600

Beleaguered Japanese electronics giant Sony is mulling drastic changes to its corporate structure, according to the Times of London. It is on the verge of shutting down many of its Japanese factories and important divisions. The world is gradually becoming inured to hearing about job cuts – if not job cuts themselves - as the global economy sinks deeper into an apparently abysmal financial quagmire. And it is very likely that the next major news of job cuts will come from Sony; it had announced last month that it was going to hand pink slips to 16,000 employees.

Sources within Sony told the Times of London that Sony’s Japanese operations will bear the brunt of the radical changes. The changes might take effect after the upcoming Consumer Electronics Show in the profligate city of Las Vegas. But analysts, especially who have been calling for an overhaul for a long time now, fear that the changes might just be too late in the day.

They want Sony’s boss Howard Stringer to enjoy greater power, if the company is to extricate itself from its old ways. The road ahead is pocked with impediments for the company as it will also have to outmaneuver the global financial crisis.

Image Credit: Ftd.De

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Thrown Out Music Industry Antitrust Suit Gets Thrown Back In

Is Sony Preparing for a Corporate Metamorphosis, Job Cuts?