Puretunes Settles [10:29 am]
The operators of a Spanish-based Web site that sold music downloads have agreed to pay $10.5 million to settle a copyright infringement lawsuit brought by several recording companies.
[...] Puretunes went off-line in mid-June 2003, less than two months after its launch. A month later, the top five recording companies and their labels sued Sakfield.
The suit alleged the company unlawfully copied and distributed thousands of songs from artists such as U2, Elvis Presley and Britney Spears through the Web site. Puretunes charged users for access to the music files, misleading consumers into believing they were buying music from a licensed online retailer, the companies claimed.
When Puretunes launched, Sakfield claimed it had obtained licenses from Spanish trade associations representing publishers and musicians, enough to comply with Spanish copyright laws.
But the record companies asserted that no such loophole in Spanish law exists and that Sakfield was liable.