Court
Asks For Department of Justice Input on Sony Case
Aug 27, 2001 - Judge Emmet G. Sullivan of the U.S.
District Court for the District of Columbia, who is presiding over the
litigation between the National Association of Recording Merchandisers
and Sony Music, issued a ruling on August 15 in which he requested that
the U.S. Department of Justice file an amicus brief on the case.
The court requested the Department of Justice brief be filed by
October 31, after which both parties in the suit may file responses
until November 30, with government and counter responses due by December
14.
NARM
President Pamela Horovitz said, “While the request for the amicus
obviously indicates that a ruling will not be forthcoming in the
immediate future, we respect Judge Sullivan’s efforts to be thorough
and careful in evaluating these issues, which are still present in the
marketplace and which still need a resolution.”
NARM
serves the music retailing community in the areas of advocacy,
networking, information, education, and promotion.
The Association’s more than 1,000 members include retailers,
wholesalers, distributors, and suppliers of products and services.
Court Asks For
Department Of Justice Input On Sony Case
Press Release:
NARM Lawsuit Against Sony
Narm
Withdraws Suit Against Narm
Music Retailers Sue Sony
Music to Halt Pirating Away Customers
The lawsuit, filed in the US
District Court for the District of Columbia, charges that Sony is
illegally using its power in the sale of music to force retailers to
carry compact discs that contain not only music but also software
(hyperlinks), and promotional inserts directing consumers to competing
retail locations owned or operated by Sony. The complaint also alleges
that Sony engaged in copyright misuse, illegal price discrimination by
favoring its own record club and on-line music retailer (CDNow/Columbia
House) over other retailers, unfair competition, and false advertising.
"Retailers have been
complaining to Sony since early last year about the practice of using
hyperlinks on CD's to divert retail customers to its own retail sites,
but the complaints have fallen on deaf ears," said Pamela Horovitz,
President of NARM.
It's not the hyperlinks per se
that have retailers angry since many retailers enhance their own web
sites through negotiated hyperlinks to other sites. "We object to
not having the option of buying CDs without these hyperlinks," said
David Lang, President of Compact Disc World. "The links come
embedded in selected enhanced CD's and their presence is never even
communicated to retailers," Lang added.
"I'm angry that after all
the effort Tower puts into helping Sony artists, these links are being
used to drive sales at Sony stores instead of at our stores," notes
Stan Goman, Executive Vice President of Tower Records and Chairman of
NARM's Board of Directors.
"Litigation is never a
first choice," said Gil Wachsman, Vice-Chairman of The Musicland
Group and a member of NARM's Board of Directors. "But online or
offline, a business model based on pirating customers is simply not
fair. It seems unlikely that the marketplace is well positioned to
resolve this dispute without significant disruption to current projects
and relationships. Therefore NARM is turning to the courts as the most
logical place to iron out this disagreement."
NARM is the not-for-profit trade
association which represents over 1000 member companies engaged in music
retailing, wholesaling and distribution.
Court Asks For
Department Of Justice Input On Sony Case
Press Release:
NARM Lawsuit Against Sony
Narm
Withdraws Suit Against Narm
Statement
On NARM’s Withdrawal
Of Lawsuit Against Sony
Nov
30, 2001 - “The NARM Board of Directors has voted to withdraw its
pending lawsuit against Sony Music over the use of hyperlinks on CDs
that direct retail customers to label controlled sites. In the nearly
two years since the litigation initially was filed, the landscape and
the facts surrounding digital distribution of music have changed
dramatically.
“The
Board believes that the interests of our retail members will be better
addressed by focusing our energies and resources on educating industry
executives and government officials about retail concerns relating to
digital distribution, copyright law, and antitrust via other channels.
“NARM
extended an invitation to Sony to return to the NARM Convention &
Trade Show and they have accepted. We look forward to initiating dialog
across a range of issues not only with Sony, but with others as well.”
NARM
serves the music retailing community in the areas of advocacy,
networking, information, education, and promotion. The Association’s
more than 1,000 members include retailers, wholesalers, distributors,
and suppliers of products and services.
Court Asks For
Department Of Justice Input On Sony Case
Press Release:
NARM Lawsuit Against Sony
Narm
Withdraws Suit Against Narm
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