Sony Corp., Vivendi Universal SA’s Universal Music and other music labels have lost a bid to dismiss a suit alleging that the companies conspired to sell defective compact disks that do not play on personal computers..The record labels had sought to dismiss the suit under a California law intended to prevent the suppression of free speech. The companies claim that product labels and advertising, including any alleged failure to warn, are protected by the First Amendment..The suit filed last year by two consumers charged that piracy-protection measures on CDs sold by the major labels made the disks “unreproducible or unstable” for use in many personal computers and digital videodisk players..The companies have tried to ensure that their music cannot be copied since music-swapping services such as Napster Inc. gained popularity in the late 1990s..”Simply put, this court finds that plaintiffs do not attack” defendants’ speech, Los Angeles Superior Court Judge Peter Lichtman wrote in his order Thursday. “Rather, plaintiffs are challenging the defendant’s failure to warn consumers about the presence of defects.”.A call to a lawyer representing the labels was not immediately returned. Calls to Sony’s New York offices went through to voice mail, and a call seeking comment from Universal Music’s Los Angeles office was not returned..The suit charges that AOL Time Warner Inc., Sony, Bertelsmann AG, EMI Group PLC and Universal Music breached warranties and engaged in unlawful business practices by agreeing to sell CDs that “interfere with their customers’ legal right to play or transfer music to other playback mediums.”.Entertainment companies frequently use California’s so-called anti-SLAPP, or Strategic Lawsuit Against Public Participation, law to defend themselves in suits challenging their marketing practices..Last year, the studios won the dismissal of a group of suits filed on behalf of moviegoers over expenses-paid travel and free merchandise given to film reviewers..Universal Music led in market share for current titles and catalog sales in 2002 with 28.8 percent, according to a report by Nielsen SoundScan, which tracks U.S. sales. It was followed by Warner Music Group with 15.9 percent, Sony Music Entertainment with 15.7 percent, Bertelsmann’s BMG with 14.8 percent and EMI with 8.4 percent.
of suits filed on behalf of moviegoers over expenses-paid travel and free merchandise given to film reviewers..Universal Music led in market share for current titles and catalog sales in 2002 with 28.8 percent, according to a report by Nielsen SoundScan, which tracks U.S. sales. It was followed by Warner Music Group with 15.9 percent, Sony Music Entertainment with 15.7 percent, Bertelsmann’s BMG with 14.8 percent and EMI with 8.4 percent.
Source: International Herald Tribune
