Sony Music has initiated a lawsuit against Napster and Rhapsody International for $9.2 million in unpaid royalties, potentially escalating to $36 million in damages. After being acquired by Infinite Reality for $207 million, Napster failed to fulfill payment obligations. Complaints from several labels about delayed payments have emerged, with some payments overdue by more than a year. Legal actions are increasing against Napster, raising concerns about its sustainability in the music industry.
In the 2020s, lawsuits are retro: Sony Music is suing Napster for $9.2 million in unpaid royalties, with a potential for $36 million in damages.
Napster was acquired by Infinite Reality for $207 million last March, but failed to make any payments over a year despite agreeing to a plan with Sony Music.
At least half a dozen labels have complained about Napster, with some payments delayed by months to over a year, prompting further legal action.
If Napster can't resolve its financial issues, the music industry may face serious repercussions, reminiscent of the earlier tumultuous period with Metallica.
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