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MP3.com in double trouble

Written by Jari Ketola @ 07 Mar 2001 6:16

MP3.com suffered a double blow on Tuesday. First they lost the copyright battle with independent record label TeeVee Toons Inc., which means more damages to pay for copyright infringements.
The secold blow came from one of MP3.com's insurers seeking a ruling it doesn't have to cover MP3.com's losses caused by copyright infringement claims.

Westport Insurance Corp. said MP3.com had demanded coverage for losses caused by the My.MP3.com service. Westport denied coverage because, according to them, MP3.com misrepresented its business practices and entered into settlements without Westport's consent.

MP3.com's stock fell 14 percent on Nasdaq.

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