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Recording Industry Association of America, National Music Publishers’ Association Reach Settlement with Audiogalaxy.com
New York, NY, June 17, 2002 – The recording industry, music publishers and songwriters announced today that they have reached an out-of-court settlement with Audiogalaxy.com, the Napster-like clone, which requires Audiogalaxy to stop the infringement of copyrighted works on their peer-to-peer network.
The agreement follows a lawsuit filed in late May accusing Audiogalaxy of facilitating and encouraging widespread copyright infringement – a last resort step after repeated efforts to warn the firm of their liability were ignored or resulted in ineffective attempts to fix the problem. The suit was brought by the Recording Industry Association of America (RIAA), on behalf of its member labels, and the National Music Publishers’ Association (NMPA), on behalf of the music publisher principals of its licensing affiliate, The Harry Fox Agency, Inc.
The settlement reached would allow Audiogalaxy to operate a "filter-in" system, which requires that for any music available, the songwriter, music publisher, and/or recording company must first consent to the use and sharing of the work. The other key provision of the agreement is for Audiogalaxy to pay the music publishers and recording industry a substantial sum based on Audiogalaxy's assets and interest in resolving this case quickly.
"We are pleased to settle this case quickly. This is a victory for everyone who cares about protecting the value of music," said Hilary Rosen, Chairman and CEO of the RIAA. "This should serve as a wake-up call to the other networks that facilitate unauthorized copying. The responsibility for implementing systems that allow for the authorized use of copyrighted works rests squarely on the shoulders of the peer-to-peer network."
"The message is clear – there is no place on the Internet for services that exploit creators' work without fair compensation," added Edward P. Murphy, President and CEO, NMPA. "Such services hurt creators and hurt the legitimate Internet businesses that wish to comply with the law and compensate the creators. The swift resolution of this matter is thus a double victory that creators and legitimate Internet businesses should join in hailing." (more)
Audiogalaxy.com, based in Austin, Texas, was one of the more heavily trafficked file-sharing websites.
The Recording Industry Association of America is the trade group that represents the U.S. recording industry. Its mission is to foster a business and legal climate that supports and promotes our members' creative and financial vitality. Its members are the record companies that comprise the most vibrant national music industry in the world. RIAA® members create, manufacture and/or distribute approximately 90% of all legitimate sound recordings produced and sold in the United States.
In support of this mission, the RIAA works to protect intellectual property rights worldwide and the First Amendment rights of artists; conduct consumer industry and technical research; and monitor and review - - state and federal laws, regulations and policies. The RIAA® also certifies Gold®, Platinum®, Multi-Platinum™, and Diamond sales awards, Los Premios De Oro y Platino™, an award celebrating Latin music sales.
The National Music Publishers’ Association, Inc., founded in 1917, works to protect and advance the interests of the music publishing industry. With over 900 members, the NMPA represents the most important and influential music publishing firms throughout the United States.
The Harry Fox Agency, Inc. provides an information source, clearing house and monitoring service for licensing musical copyrights, and acts as licensing agent for more than 27,000 music publisher principals, who in turn represent the interests of more than 160,000 songwriters. Besides the core business functions of licensing, collections and distribution of royalties, HFA conducts periodic record company and other user audits on behalf of its principals. HFA is the licensing affiliate of the National Music Publishers’ Association.
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