Adult DVD producers who link to their own Web stores on their DVDs may want to watch this case: Sony Music Entertainment has been sued by retailers accusing the giant of steering customers to its online stores illegally - by including hyperlinks on its music compact discs.
Bloomberg News reports the National Association of Recording Merchandisers sued Jan. 31 in federal court, charging copyright misuse, false advertising, unfair competition, and illegal price discrimination in favor of Sony's own record club and online retailer.
"This gets a lot of these issues into the court," trade association president Paula Horvitz tells Bloomberg. The group represents over a thousand music retailers, wholesalers, and distributors. "We hope we can get the ground rules laid out as we get into an Internet age."
The new CD generation, enhanced CDS, include video images and interactive features which show up when played on a personal computer. Typically, Bloomberg says, Sony and competitors include a hyperlink on these video images that connects Internet users to an online store. But the retail group says they're being forced by cybergunpoint to move their own customers to Sony's retail operation.
Sony - whose holdings include the valuable, historic Columbia Records catalogue - isn't the only record company doing it, Horvitz tells Bloomberg, but the NARM singled Sony out because of its economic heft. And she says the group isn't ruling out action against other music companies.
The lawsuit wants a court injunction barring the practices, unspecified damages, and legal fees, Bloomberg says.
