Monday, March 28, 2011

Web site paid $ 950,000 for selling Beatles songs

- An internet portal of the Beatles' songs sold for 25 cents each before they were legally available to record companies agreed to pay nearly a million dollars to end a lawsuit. Federal Judge Josephine Staton Tucker approved the settlement between BlueBeat. com and the record companies EMI Group PLC, Capitol Records and Virgin Records America on Friday.

The judge had ruled in December that BlueBeat. com had violated the intellectual property of the seals and presented an unfair competition. A trial to determine how much companies should BlueBeat was to begin Tuesday in Santa Ana, California. BlueBeat sold music of the Beatles and other artists, including Coldplay and Lily Allen, for several days, before music companies sue to get the site closed in November 2009.

By then, the site had already distributed more than 67,000 songs from the Beatles. The sale of songs came shortly after the release of remastered versions of the disks in the group and an expensive package of CDs. A year later, Apple Inc. announced with great fanfare that it would begin selling the music of the Beatles in its popular iTunes service.

In the first week, more than 2 million Beatles songs were purchased on the Internet for $ 1.29 each, and sold 450,000 albums. BlueBeat refused violations of the law, saying that his owner Hank Risan had created a new method called "psycho-acoustic simulation" resulting in unique versions of copyrighted music.

The judge rejected the arguments and explanations on the method in its ruling in December, and noted that Risan recordings were based on copies of CDs he had bought. The attorneys of record labels and BlueBeat not immediately return phone messages seeking comment. The settlement does not cover attorney fees for record companies, and requires BlueBeat Risan and permanently avoid infringing intellectual property rights.

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