InfoSpace settles EMI ringtone suit

InfoSpace settled a federal lawsuit filed early last year by music industry giant EMI, alleging the mobile media firm underpaid royalties and sold ringtones without the proper licensing rights. Financial terms of the settlement were not disclosed in an InfoSpace SEC filing disclosing the settlement--in a complaint filed January 12, 2007 in U.S. District Court in New York, EMI sued InfoSpace for $100 million after its auditors concluded InfoSpace was miscalculating download royalties due from Verizon Wireless and US Cellular, not reporting royalties for eight approved sub-licensees and failing to pay royalties on EMI-owned compositions. In its initial response, InfoSpace denied EMI's allegations.

For more on the InfoSpace/EMI settlement:
- read this Puget Sound Business Journal article

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