Bertelsmann AG, the German owner of the music company that
recently agreed a deal with Napster to settle a legal action
against the on-line song-swapping service, is being sued by a
record producer for allegedly helping Napster infringe
copyrights.
In the wake of this agreement a music producer, Matthew Katz,
filed suit on 22nd November in the US District Court in San
Francisco against Bertelsmann.
Matthew Katz in his suit claims that Bertelsmann's e-commerce
unit is enabling Napster to infringe on the copyright in recordings
by financing music sharing activities. Katz believes that
Bertelsmann is party to illegal behaviour, through its investment
of substantial sums of money which he believes to be in the region
of $50 million and through its support and guidance for Napster's
future benefit, it is promoting Napster. He argues that this
contributes to the unauthorised copying and distribution of music.
Katz is also seeking an account of all profits made by Bertelsmann
and Napster as a result of the purported infringement. Katz has a
separate suit pending against Napster.
