JUDGE SLAPS DOWN MP3.COM

New York district court judge Jed Rakoff sided today with the Recording Industry Association of America in its suit against MP3.com, finding the company liable for copyright infringement in relation to the database created for its My MP3.com service.

My MP3.com allows users to register and listen to CDs and MP3s from any Web-accessed computer. Users of the company's Instant Listen Service can listen to an online version of a CD immediately after purchasing it from MP3.com. The Beam-It feature involves placing a CD in the user's computer to register it with MP3.com. Rather than having users upload these CDs, MP3.com copied and stored a database of 80,000-plus albums, which is the crux of the infringement suit.

A full written opinion from the judge is expected within two weeks, at which time damages may be assessed. MP3.com's lawyer, Michael Carlinsky, was quoted by the Associated Press as saying that the company will appeal today's ruling.

MP3.com's stock tumbled on the ruling, falling below $7 at press time.

For the lawyer in you, here's the full text:

"Plaintiff's motion for partial summary judgment holding defendant liable for copyright infringement is hereby granted. A written opinion setting forth the grounds for this determination will issue shortly, mostly likely within the next two weeks. Meanwhile, a schedule will be set for the expeditious completion of the remainder of this case. SO ORDERED."