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Sony Music Sues Napster Owners for $9.2 Million in Unpaid Royalties

It claims Napster breached an agreed four-installment payment plan triggered by Infinite Reality’s March acquisition by continuing to stream Sony’s catalog without royalties.

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Scott Barbour/Getty Images

Overview

  • Filed on August 1 in Manhattan federal court, the suit names Napster, its parent Rhapsody International and owner Infinite Reality.
  • It seeks $9.2 million in unpaid licensing fees and up to $37.5 million in statutory damages for alleged willful copyright infringement.
  • Sony alleges Napster defaulted on all four installments of a payment plan arranged after Infinite Reality’s $207 million purchase in March.
  • After issuing a breach notice in May and terminating the deal in June, Sony says Napster has continued to stream its recordings without permission.
  • Napster is also facing lawsuits from SoundExchange and Sonos over $3.4 million in late royalties and has been accused by at least six labels of similar payment delays.