On Tuesday, EMI became the second major label to sue Bertelsmann over its relationship with Napster.
The copyright-infringement suit was filed in New York. EMI alleges that Bertelsmann "materially contributed to the massive infringement" of its works by funding Napster and participating in the management and decision-making of the service. EMI seeks $150,000 in damages for each copyright allegedly infringed.
Universal Music Group and a group of music publishers have already brought suits against Bertelsmann who loaned the network $50m in October 2000. subsequently Napster shut down under court order in July 2001.
EMI said: "By investing both millions of dollars and management resources in Napster -- which was an illegal enterprise built on the unlawful distribution of copyrighted works -- Bertelsmann enabled and encouraged the wholesale theft of copyrighted music."