MP3.com is hoping to strike a deal with the world’s largest record labels in an effort to keep on rockin.’
Sources tell The Post the Recording Industry Association of America (RIAA) – which represents 10 major labels – has asked the embattled music Web site to pony up $100 million to settle their lawsuit after a federal judge’s ruling Friday that MP3.com violated copyright law by creating a database of more than 80,000 albums.
MP3.com CEO Michael Robertson is willing to pay the $100 million, said one source close to the negotiations, but wants the sum to encompass all licensing fees signed in the future.
And the RIAA has reportedly said, “No deal.”
“They [the RIAA] want to talk litigation first, then licensing, but MP3.com wants to settle it all at once,” said the source.
And with a market capitalization of more than $628 million, a settlement of $100 million would not cut too deeply into MP3.com’s coffers.
If MP3.com decides not to settle, the company faces damages in the billions of dollars.
But in another twist of events, a bitter wedge is being driven between the RIAA and the labels it represents: The labels wanting to negotiate their own agreements with MP3.com without the help of an intermediary.
“The RIAA is trying to position themselves as a trade group that negotiates licensing agreements, but the majors want to negotiate their own deals,” said one source.
Robertson told The Post that talks with the RIAA have occurred “on a daily basis” and that “both parties are very motivated to make things happen sooner rather than later.”
He said the talks, going on around the clock since the judge’s ruling, were focused on finding a way for MP3.com to license music from the labels. The other option is to remove the copyrighted music from the site altogether – an alternative MP3.com does not want to consider.
While the industry braces for an immediate outcome, Wall Street is pleased with the San Diego-based Internet company’s desire to settle. After the stock fell 40 percent Friday to $7, shares were up yesterday, closing at $9.25 with the news the company was ready and willing to settle.