UMG Recordings v. MP3.com

Citation: UMG Recordings, Inc. v. MP3.com, 92 F. Supp. 2d 349 (S.D.N.Y. 2000).

In UMG Recordings v. MP3.com, various record companies sued an Internet company, MP3.com, for storing personal MP3 music files created from personal copies of compact discs sold by the plaintiffs. By opening an account with MP3.com, an individual could store his or her MP3 music files on MP3.com’s central servers for play at a later time and place. MP3.com argued that the copying necessaryto provide this service was a “fair use.” Rejecting this argument, the court found that copying the recordings to facilitate their retransmission through another medium was not a transformative use, nor was it a time-shifting transformative use (e.g., video taping a television program for viewing at a later time).

The court also held that the recordings at issue were at the core of intended copyright protection and the amount copied was excessive. Most importantly, the court concluded that MP3.com’s business model had an adverse impact on the recording companies’ market for selling compact discs as well as on other derivative markets.