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Like a shark smelling blood in the water, the latest round of investigations has attracted the lawyers. Prominent California attorney William Lerach has now launched a class action suit against the labels on behalf of consumers who have allegedly been overcharged for music. This in itself is not particularly surprising given the ongoing federal investigation into the same topic, but the lawsuit does contain some interesting tidbits. For instance, the suit claims that the music labels fought tooth and nail against the arrival of online music stores, and that they did so by launching their own poorly-conceived (on purpose) online ventures.The suit also alleges that the record labels sought to shut down online music pioneer Napster at the same time they were introducing their own joint ventures to sell online music. MusicNet and pressplay "were not serious commercial ventures, but rather attempts to occupy the market with frustrating and ineffectual services in order to head off viable Online Music competitors from forming and gaining popularity after Napster's demise," according to the suit.If this lawsuit gains any traction, it could be a major headache for the music industry, because similar suits could wind up being filed in countries all over the world. Given that many of the price-fixing allegations center on Apple's iTunes Music Store, the labels could find themselves in trouble in more than twenty countries. After all, intense dislike of getting screwed is not just an American phenomenon.
