MP3tunes CEO Secures Dismissal from Capitol Records Lawsuit

October 6, 2008

NEW YORK, October 6, 2008 - Michael Robertson, CEO of San Diego-based MP3tunes, LLC, was dismissed from a lawsuit for lack of personal jurisdiction and improper venue. The lawsuit, filed by Capitol Records, is pending in the U.S. District Court for the Southern District of New York. MP3tunes is a provider of a secure, online music storage service. Duane Morris LLP represented Robertson and continues to represent MP3tunes. Edward Cramp, a partner in the firm's San Diego office, and IP partner Gregory Gulia of the New York office are the lawyers in the matter.

Finding that Robertson's business activities in New York did not sufficiently relate to the plaintiff's claims, Judge William H. Pauley III determined that he did not have jurisdiction over Robertson. The court also found insufficient evidence to demonstrate that Robertson exercised control over the company's allegedly infringing activities.

"Judge Pauley's decision sets an important precedent for the music industry," Cramp said. "The record labels are now on notice that intimidating individual executives in an effort to extort settlements from their companies will not be permitted."

Capitol Records alleges that MP3tunes violates federal copyright law by enabling users to save their music in a secure online "storage locker," to listen to their music in that locker from any computer, and to download their music to various internet-enabled devices. MP3tunes denies any infringement.

The record company's litigation against MP3tunes is still pending, but Robertson is no longer a personal defendant, Cramp explained.