MP3.com (Nasdaq: MPPP) was down 1/4 to 11 5/8 in early trading Thursday after announcing it will disable access to major record companies’ recordings from its My.MP3.com service while talks to settle a copyright infringement suit continue.
The record companies sued MP3 in January, alleging that the company’s service — which enables free access to recordings — infringes on their copyrights. A judge agreed, and granted the companies’ motion for a partial summary judgment on April 28th.
“We regret the need to take this step, which inconveniences more than 500,000 My.MP3.com account holders,” said MP3 President and Chief Operating Officer Robin D. Richards. “While we disagree with the court’s decision, we also want to demonstrate our good faith and strong desire to achieve an expeditious business resolution.”
Richards also pointed out that the move will not affect the company’s results, as “no direct revenues in the foreseeable future were projected from the My.MP3.com service.”