Apr 23, 2007 • 1 min read

New MP3 service hits back at Warner's cease and desist

AnywhereCD has asked a court to rule that its MP3-only option did not breach its deal with Warner Music, after the major issued a cease and desist.

That new online music service from MP3.com founder Michael Robertson has filed a complaint against Warner Music Group asking for a court judgment that confirms the new venture did not breach its agreement with the major.

As previously reported, AnywhereCD launched earlier this month and specialises in selling "MP3 albums". Basically it sells physical CD albums in much the same way as other mail order sites except that once a customer has ordered the CD they then have the option to download the tracks off it as MP3 files. The logic is that, because once someone has a CD they can easily rip the tracks off it as MP3, there is no harm in supplying the MP3s after a physical purchase.

At launch, AnywhereCD also offered a function whereby users could avoid paying postage and packaging charges by just buying the MP3 files, meaning they would not receive any physical CD as part of the deal. It turns out it was that extension in particular that angered Warner Music, the only major label making music available to the service. They said that because that option was offered, Robertson was essentially running an MP3 download platform, and therefore it wasn't something they'd ever agreed to - Warner, of course, is still very much resisting the sale of digital music in non-DRM protected MP3 formats. As such, the major issued a cease and desist in relation to the no-physical CD service, claiming it "flagrantly violated" their agreement with AnywhereCD.

AnywhereCD subsequently removed the MP3 only service to satisfy Warner, but has since disputed that that service violated its agreement with the major, and is seeking a court ruling to say as much. The company is also seeking damages over allegations Warner is guilty of business defamation, trade libel and breach of contract.

In a statement Robertson told reporters this weekend: "AnywhereCD has the utmost respect for [the] Warner Music Group family of artists and we want to distribute their albums through our service. Unfortunately, we ran into a contractual disagreement that necessitates the help of the courts and ultimately the oversight of a judge. We hope to settle this matter quickly, and move forward with our stated business of selling ... MP3 albums."

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