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By Robert Menta- 2/12/01 By the end of the trading day, struggling EMusic got a huge boost from Napter's bad news. With the ruling by the 9th U.S. Circuit Court of Appeals that Napster must stop trading in copyrighted material, EMusic's stock shot up 69.23%. |
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Threatened by de-listing from the NASDAQ because its stock has traded under $1.00 for more than 90 consecutive days, this is music to the ears of a company that has labored to sell MP3 tunes online. Making digital music sales a viable business is a difficult endeavor when the same files can be downloaded for free. With only $16 million dollars of funding left and no investors in sight, the company was in trouble and praying for some turn in fortunes that would make their business model feasible again to venture capital. Today, the courts may have answered their prayers.
Gene Hoffman, President and CEO, made this announcement shortly after the decision was handed down.
``Today's decision is a fair, important re-affirmation of the rights of copyright holders to be able to determine how and where their work is used. We are pleased that the district court will be issuing a new injunction against Napster that will effectively block the unauthorized distribution of music files. This should establish a clear foundation for the growth of legitimate music download services on the Internet -- where artists, labels and consumers all have a voice in how digital music is enjoyed".
Emusic was not the only digital music site the saw their stock increase. Liquid Audio, another service that sells music files in its own proprietary format, increased 10% today and MP3.com rose slightly over 8% on the news.
Copyright MP3 Newswire 2001
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