Sony Music Entertainment is suing Rhapsody International for $9.2 million in licensing fees due to unpaid royalties and a potential $36 million for copyright infringement. Napster, owned by Rhapsody, allegedly failed to make royalty payments while continuing to stream Sony's music. After Rhapsody was acquired for $207 million, Sony claimed they were owed over $6.5 million. Despite being made aware of the breach in May, Rhapsody continued streaming, prompting Sony to seek significant damages for copyright violations involving 240 songs.
Sony claims that Napster failed to make royalty payments for over a year, while continuing to stream music from its catalog.
Rhapsody allegedly owed over $6.5 million to Sony and its subsidiaries when Infinite Reality acquired Rhapsody International.
According to the lawsuit, Rhapsody have since failed to make any payments on their outstanding balance or additional licensing fees since the acquisition.
Sony Music claims that in May, they sent a letter to Rhapsody informing the company they were in breach of contract.
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