Supreme Court OKs Price Fixing Suit Against Music Labels

Lora Bentley

The four major music labels are facing a price-fixing lawsuit now that the U.S. Supreme Court has decided the case can proceed.

 

According to DigitalTrends, the suit alleges that back when digital music first began to emerge in 2005, Sony Music Entertainment, Warner Music Group, EMI and Universal Music Group conspired to set the price for downloads at 70 cents per song.

 

A federal district judge threw out the case in 2008 after deciding that the plaintiffs did not present enough evidence for the case to move forward. When an appeals court reversed that decision, the record companies appealed to the nation's highest court.

 

As writer Geoff Duncan points out, though, the fact that the Supreme Court is allowing the case to proceed to the discovery process does not mean a trial or settlement will be immediate. At best, the case will go to trial late this year.



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