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Warner sued over DRM-related termination

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In a late sequel to a post I published over ten days ago, Billboard reported on Friday that AnywhereCD has filed suit against Warner Music Corp. (NYSE: WMG) after the label corporation sent termination notices to the DRM-free online music service on April 13.

AnywhereCD has apparently already complied with some aspects of Warner's initial termination notice by removing the option for customers to download only DRM-free mp3 files (the other remaining option allows customers to buy a physical copy and have available for download DRM-free mp3 quality tracks from their purchased album). Billboard reports that the mp3 only option was cheaper to buy as well, which may have fueled Warner's initial complaints.

Both reports about the situation make it seem that all AnywhereCD is doing is ripping tracks from CDs and selling the CD alongside the mp3 tracks. I could go on and lament about the downfall of another company trying to sell DRM-free material, but something about this seems off.
EMI Group plc (LON: EMI) and Apple Inc. (NASDAQ: AAPL) came together almost a month ago to make a DRM-free situation manageable. This time around it seems like a major label is being bullied into dropping DRM, which only seems to damage the progress related to DRM and the future of the technology. Forcing the elimination of DRM might be a nice move, but if the labels are going to be expected to do anything about the situation we should allow them to do that on their own (despite how long it may take). I realize I speak for the labels at the moment, but the industry is hurting as it is.

The online service intends to "settle the matter quickly, and move forward with their stated business of selling ... mp3 albums," at least according to the report. Meanwhile, Warner closed at 16.35 yesterday, which was a much lower amount than when the situation with AnywhereCD began on April 12.

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Last updated: November 25, 2009: 12:23 AM

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