Photo: Michael Ochs Archive/Getty
A federal court has issued a preliminary injunction against the digital music vendor Bluebeat after the site offered up high-quality MP3s of the Beatles’ catalog without permission. According to the Los Angeles Times, the judge overseeing the case, which came after EMI Music and Apple Corps. issued a copyright infringement lawsuit against Bluebeat, said there was no distinct difference between the Beatles’ recordings and the “psychoacoustic simulations” that Bluebeat claims they added to the music that would have allowed them by a legal loophole to sell the Beatles catalog digitally.

Explore the Beatles’ full catalog in our album guide.

As Rolling Stone previously reported, Bluebeat was recently selling the newly remastered Beatles catalog for a mere 25 cents per track on its now-defunct Website, even though the owners of the Fab Four’s music have yet to agree to any digital deal. Bluebeat was also selling the entire Beatles in Mono box set digitally for only $53.25, well below the market value the Beatles would command on either an iTunes or Amazon MP3 store. (more…)

Norah Jones, whose new album The Fall was released yesterday, is about to become a Web-music guinea pig. EMI has teamed with video-streaming site Hulu — itself a partnership between NBC, ABC and Fox — to establish artist pages for the major label’s roster. Jones is the first to get her very own Hulu page, which will house all of the Grammy winner’s music videos and a selection of live performances, as well as interviews about recording The Fall. As Rolling Stone previously reported, in December 2008 major labels were weighing partnering with Hulu to increase streaming royalties. (more…)

Photo: Apple Corps

Though you can play Beatles songs on Rock Band and enjoy the band’s epic catalog on remastered CDs, you still can’t legally buy the music of John, Paul, George and Ringo on the iTunes store or other digital shops — yet. In a move that may represent Apple Corps. softening its traditionally inflexible view of selling the Fab Four’s music digitally, the company and EMI Music will release a limited-edition USB drive featuring the entire Beatles in Stereo remastered set as 320 Kbps MP3s on December 8th. All 14 albums and 13 “mini-documentaries” will be included on the 16GB USB drive, which will be shaped like the iconic Apple logo with “The Beatles” written on it. Only 30,000 of these USBs will be produced; onsale information is available at the Beatles Website.

Explore the Beatles’ full catalog in our album guide.

In addition, EMI is going after a digital-music Website called BlueBeat.com for offering up the Beatles catalog as a digital download without permission. According to Variety, a copyright-infringement lawsuit was filed yesterday by EMI, which controls the digital rights of the Beatles music through an agreement with Apple Corps. (more…)

In an attempt to tap into the digital-music market dominated by iTunes, Google today unveiled a new song-searching system that will allow users to quickly stream a free track using LaLa or MySpace Music. Both Google and the record business hope the simple-to-use form of music search dissuades users from typing in, say, “Beyoncé” and “torrent” and turning up thousands of illegal song-download results. “The best way to address that [torrent-searching] situation is to provide a really great and comprehensive and fast, excellent music service,” says R.J. Pittman, a product management director at Google. “We really feel the way is to make it much better for people — and that’s going to have a positive impact on music industry.”

With the new system, Google users will find a large “play” button at the top of the results page when they search for an artist, song or album. They’ll also get one free stream, as well as “buy” links to LaLa, MySpace, Rhapsody, Pandora, iMeem and others. “Millions and millions of consumers search for music every day — they’re trying to get to music the best way they know how. And the best way they know how is Google,” says Geoff Ralston, LaLa’s chief executive officer. “ITunes is a great program, but it’s big and it’s heavy and it’s slow. You don’t live in iTunes all the time.” (more…)

Both Google and Facebook are reportedly planning to beef up their music features by allowing users to find and stream music more easily on their services, the New York Times reports. According to sources who have been invited to a Google event next week at Los Angeles’ Capitol Building, the search engine giant is expected to reveal “a more efficient way” of finding, streaming and learning about music, which will reportedly involve Google linking up with music sites like Lala, iLike and Imeem.

Google has not aligned itself with any of the major labels as of yet, the NYT reports, but will respond to searches for songs by presenting a 30-second stream — or in some cases, a full track — powered by its partners. Essentially, it’s a shortcut for users who may go directly to YouTube or the iTunes music store to be able to search and listen to music without paying for it. (more…)

Warner Music Group and YouTube have reportedly agreed on a new deal that will bring the major label’s videos — including work by artists like Madonna and Green Day — back to the video streaming Website. According to AdAge.com, while the two sides haven’t officially announced the new contract, WMG is also moving on to negotiations to possibly join Vevo, a video stream venture between YouTube, Sony and Universal.

As Rolling Stone reported in December 2008, Warner Music began pulling down or muting music videos that appeared on YouTube after negotiations between the two companies broke down. The result infuriated users, many of whom had used Warner Music as background for carefully constructed video projects. WMG was seeking $25-40 per every 1,000-plus views, instead of the $5-8 they were receiving under their previous agreement. According to AdAge, talks between the two parties reignited earlier this summer, and WMG is already in the process of reuploading all of the music videos back into the system. The Warner Music Group YouTube page, which was inactive since talks broke down in December 2008, was signed into last month. (more…)

Apple and the four major record labels are reportedly in talks to figure out ways to entice more consumers to purchase full-length albums, the Financial Times reports. Codenamed “Cocktail,” their plan calls for the introduction of an interactive liner-notes booklet to accompany full-album purchases. The booklet would include lyrics, photos, videos and the ability to play music on computers without using iTunes, according to sources close to the talks. Apple reportedly hopes to launch the new project in September. When contacted by Rolling Stone this morning, a spokesperson for Apple said the company was declining comment on the report.

While digital music sales remain strong and CD sales plummet, the majority of consumers still choose to purchase their music a la carte, or by the song instead of the full album. “It’s all about re-creating the heyday of the album when you would sit around with your friends looking at the artwork, while you listened to the music,” a source close to the talks told FT.com. Apple recently tried to boost album sales by introducing variable pricing, which raised the cost of hit singles while lowering that of catalog albums. Reps from the four major labels declined to comment on “Cocktail.” (more…)

Internet radio companies and the major record labels have reached a revised royalty agreement that will make it possible for beleaguered services like Pandora to survive, the New York Times reports. Under the terms of the deal, which the Internet radio companies struck with negotiating organization SoundExchange, minimum per-stream royalties were cut by roughly 40 to 50 percent. As Rock Daily previously reported, popular Web streaming service Pandora was in serious danger of shutting down before yesterday’s deal because 2007’s royalty structure made it impossible for Internet radio to remain profitable.

“For more than two years now I have been eagerly anticipating the day when I could finally write these words: the royalty crisis is over!,” Pandora founder Tim Westergren wrote in a blog post on the Pandora site. “Webcasters, artists, and record labels have reached a resolution to the calamitous Internet radio royalty ruling of 2007. Pandora is finally on safe ground with a long-term agreement for survivable royalty rates. This ensures that Pandora will continue streaming music for many years to come!” (more…)

eMusic, or “the indie iTunes” as Rolling Stone called the digital music service in 2006, is about to go a little more mainstream: the service has struck a deal to add Sony Music’s massive back catalog to its roster. The service, long-regarded as the subscription-based hub for music fans interested into DRM-free independent releases, will add the Sony labels Arista, Columbia, Epic, Jive, LaFace, Legacy Recordings and RCA, bringing with them artists like Bruce Springsteen, the Clash, Billy Joel, Michael Jackson, OutKast and thousands more. The Sony tracks will be integrated into the service in the third quarter of 2009, according to a press release.

Under the terms of the agreement, eMusic will be allowed to sell MP3s of the Sony catalog that are two years old or older, meaning new releases still won’t be available. Still, Top 40 tracks aren’t the service’s bread and butter, as eMusic has gained a following for being the destination of music seekers 25 and older thanks to its deep independent catalog and its low-cost, listener-friendly subscription model. According to the New York Times, eMusic currently boasts 400,000 subscribers. The Times reports that eMusic will slightly raise prices on some of its monthly download plans, something indie labels have been asking them to do, according to chief executive Danny Stein. Stein added that eMusic is still in talks with EMI, Universal and Warner Music. (more…)

As Rock Daily reported earlier this year, iTunes price changes went into affect today, April 7th, on the digital music service. Whereas all songs used to carry a 99¢ fee, the new arrangement allows record companies to choose whether they want to price the song at $1.29, 99¢ or even 69¢. The price change is most prevalent on songs in the Top 100 charts. Of those songs, 38 of them now carry a $1.29 charge, including the Top Three, the Black Eyed Peas’ “Boom Boom Pow,” Lady Gaga’s “Poker Face” and Flo Rida’s “Right Round.” However, the fourth and fifth song on the chart, Miley Cyrus’ “The Climb” and Kid Cudi’s “Day ‘n’ Night,” currently retain their 99¢ charge.

However, with the 30¢ increase comes the abolition of the MP3s’ DRM, or digital rights management, technology. As part of Apple’s deal with the record labels, iTunes is in the process of making its entire library DRM-free, much like the Amazon MP3 Store. Outside of the Top Songs, it seems like the pricing of an artist’s catalog is being done almost at random. Take for instance, Alice In Chains: The band’s entire iTunes catalog is priced at 99¢ except “Man In the Box,” which is priced at $1.29. It’s not just one anomaly, however. “Man in the Box” shows up three times on iTunes, on Facelift and two Best-Of comps, and all three times its priced at $1.29. A search to find songs priced at 69¢ has thus far produced no results. (more…)

The ongoing saga of the Zune has reached another sad chapter as Microsoft revealed that sales of their digital-music player were down 54 percent in the fourth quarter of 2008 compared to the same time period in 2007. According to an analysis on industry blog Coolfer, Zune revenues amounted to approximately $117 million in Q4, down $100 million from the ‘07 total. Meanwhile, over the same period, iPod sales were up. While Zune held on to four percent of the market share for portable digital-music players, iPod maintained a whopping 71 percent.

In recent weeks, Microsoft has been ready to kill off the Zune and “deeply committed” to the Zune. Confusing, no? Like most other companies during this recession, Microsoft has had their fair share of problems, including an 11 percent drop in second quarter earnings and the company’s first ever round of significant layoffs. So it seems likely that the company would want to unburden themselves of their dead weight, which given its 4th quarter numbers might be the Zune.

Another problem facing the Zune is the device’s reliance on an outdated $15-per-month subscription fee. Given the economic situation, plus the widespread nature of illegal downloading, consumers seem less willing to pay a monthly rate for the service. Yet fans of the Zune cite its wireless-sharing capabilities and interface as reasons to right for their player. Perhaps the crushing financial figures will be the wake-up call Microsoft needs to make adjustments and deliver an even stronger product, rather than simply hand the category over to Apple. (more…)

YouTube has refurbished the click-to-buy links that help sell music on their video site, Coolfer reports. The site’s new, cleaner overlay makes it easier for users to purchase music via iTunes or Amazon MP3. As evidenced by the still image from Beyoncé’s “Single Ladies” above, the link pops up around the bottom of the video, but only for about 15-20 seconds. The new click-to-buy link is both less intrusive and more visible and “should help even more people take advantage of this program,” YouTube said in a blog entry.

The new links will show up whenever a record company posts a video on YouTube, but also when uploaders use the Content ID tools to match the song with the appropriate artist. Thus far, EMI artists like Katy Perry and Coldplay have had the most success in terms of adding the click-to-buy links to their videos. The link also pops up for the Killers’ “Human,” so Universal Music Group bands are also in on the act, but the Killers’ new video for “Spaceman,” posted this weekend on YouTube, lacks the click-to-buy option. Songs by artists on the Warner Music Group do not contain the links as the video site and major label have been at odds the past few months.

YouTube is also plotting a way to expand the click-to-buy links to include video games and DVDs after experiencing some success turning Monty Python YouTube views into actual DVD purchases; sales of Monty Python discs were up 23,000 percent after the comic troupe launched their own YouTube channel.

Related Stories:

• YouTube Hits The Mute Button as Royalty Fight With Warner Bros. Continues
• Warner Music Group Pulls Videos From YouTube As Talks Break Down
• Major Labels Consider Hulu Partnership, New Music Video Site as Alternatives to YouTube

Apple has signed a deal with three more major labels to bring more DRM-free MP3s to their iTunes digital music store. The announcement of the deal with Sony, Universal and Warner Music was the centerpiece of today’s Macworld Expo in San Francisco. Apple already had a DRM-free deal in place with EMI, so all four major labels now have terms with Apple for unprotected music files. With the announcement, iTunes significantly strengthens its grasp on the digital music industry. Competitors like the Amazon MP3 Store, Wal-Mart’s digital music store and eMusic all went DRM-free over a year ago but failed to gain traction on Apple’s service.

So why would the three majors, who often complained about iTunes’ 99-cent price lock, agree to a deal with Apple to distribute DRM-free files? As part of the deal, Apple reportedly to be more lax on their strict price fix, breaking MP3s into three tiered pricing: Older catalog tracks will cost in the 69-cent vicinity, and newer songs will retain their 99-cent pricing. (more…)

After suing more than 35,000 people for illegally sharing music online since September 2003, the Recording Industry Association of America has canceled its much-publicized lawsuit campaign. The RIAA will instead work with Internet service providers to identify and contact — and sometimes penalize — users who continue to trade copyrighted music.

“We’re faced with the reality of ‘this shit isn’t working.’ And legally the ground is getting shakier in terms of winning these lawsuits. And it’s costing money,” says a major-label source familiar with the lawsuit discussions. “So, time to move on.”

The RIAA, a trade association that represents the world’s biggest record labels, has made headlines for suing 13-year-old Brianna LaHara as well as a multitude of students, flight attendants, engineers and karaoke DJs over five years. But while the RIAA insisted the lawsuits were crucial for educating customers that file-sharing is illegal, they haven’t reduced piracy, according to BigChampagne.com numbers.

Some at labels have recently been vocal about stopping the lawsuits, notably Warner Music chairman Edgar Bronfman Jr. Album sales have dropped from 636 million in 2003 to 585 million last year — and another 14 percent in 2008, according to Nielsen Soundscan. Eventually, the major-label source says, it became obvious even to the most aggressive lawsuit supporters that the lawsuits weren’t worth pursuing. (more…)

A pair of beleaguered torrent heads faced off against the law today. After the October 2007 raid on beloved invitation-only music-sharing site OiNK, U.K. authorities finally levied charges on its founder, Alan Ellis, after extending his bail four times because of lack of evidence. Ellis has been charged with conspiracy to defraud and will face trial starting September 24th. Four OiNK uploaders who were arrested in the shutdown, dubbed “Operation Ark Royal,” will soon learn whether they too will face legal action. Daniel Dove, the administrator of EliteTorrents, was found guilty of conspiracy and felony copyright infringement in Washington, DC. Dove was sentenced to 18 months in prison, three years of supervised release and a fine of $20,000. The site, which specialized in movies, was shut down in 2005. Eight other Elite admins and uploaders were previously convicted on conspiracy charges.

Related Stories:

• Six OiNK Users Arrested in the U.K.

• OiNK Gets Killed, The Internet Squeals Its Discontent