Judge Dismisses Musicians’ Suit Against MP3.com, Labels

A New York federal judge dismissed a lawsuit against online music firm MP3.com Inc. and four major record labels, saying the musicians seeking online royalties do not own the digital rights to these songs. The suit--filed in U.S. District Court by the Chambers Brothers, the Coasters and the Original Drifters--claimed that MP3.com, Time Warner Inc. and units of Seagram Co., Bertelsmann and Sony Corp. did not have the right to transmit their tunes over the Net. But Judge Jed Rakoff dismissed the claim and said the artists forfeited these rights when they signed contracts with the labels in the 1950s and 1960s. Attorneys for the musicians could not be reached for comment. The news came a day before MP3.com announced an exclusive deal with Tower Records, the leading independent music retailer, to automatically copy any CDs bought at the retailer’s Web site to the buyer’s My.MP3.com account. Officials said the new service, called Instant Listening, will be launched in January and rolled over to Tower’s real-world stores later in the year. MP3.com shares closed at $6.56, down 22 cents on Nasdaq.