IBM unveils Internet Music delivery system
NEW YORK, Feb 8 (Reuters) - International Business Machines Corp., (NYSE:IBM - news) in an alliance with five large music companies, on Monday unveiled a system to allow home computer users to download music and make secure royalty payments to record companies via the World Wide Web.
The music companies in the deal, -- Seagram CO Ltd's (Toronto:VO.TO - news) Universal Music, EMI Group Plc's (quote from Yahoo! UK & Ireland: EMI.L) EMI, Bertelsmann AG's (quote from Yahoo! UK & Ireland: BTGGg.F) BMG, Sony Corp's Sony Music Entertainment, and Time Warner Inc.'s (NYSE:TWX - news) Warner Music -- will make a large selection of music available when the pilot product is unveiled later this year, an IBM spokeswoman said.
Initially the trial will be limited to users with broadband cable modem delivery. Users will be able to download a complete
CD-quality album to a computer hard drive, then transfer the music to their own compact discs, an IBM spokeswoman said.
The system is an attempt to combat popular products that copy music over the Internet, but often bypass making royalty payments.
The system, formerly code-named ''Madison,'' is the recording industry's first non-litigious response to its competitors, primarily
Diamond Multimedia Systems Inc. (Nasdaq:DIMD - news).
In October, the Recording Industry Association of America sued Diamond alleging its product, called the Rio PMP300, violates the 1992 Audio Home Recording Act because it allows music to be replayed without paying artist royalties. |
