American XS lawsuit update
|Judge Clears Bon Jovi Album for Oct. 8 Debut
A federal judge Friday denied an injunction that would have barred the sale of rock group Bon Jovi's new CD, "Bounce," clearing the way for the widely anticipated album's debut as planned on Oct. 8.
The ruling, made by Judge Charles Haight of U.S. District Court in New York, benefits Bon Jovi's backers at Universal Music Group, the world's No. 1 music company, because parent Vivendi Universal needs all the cash it can get.
Moreover, the injunction concerned a plan that is designed to entice consumers to buy the CD versus downloading illegal, digital copies. Record companies are battling slumping CD sales that industry watchers link to free digital music on the Net.
Judge Haight ruled that the plaintiff, New York-based technology company DownloadCard Inc., in its early briefings failed to show a likelihood of success and adequate hardship if the "Bounce" release was pushed back.
Universal Music Group and its Island Def Jam label, which is distributing "Bounce," would see significant cost increases, marketing disruptions and even "commercial embarrassment" by a delayed release, according to the ruling issued Friday.
An attorney for DownloadCard said preliminary injunctions in cases like these were "hard to get."
"We remain confident in the merits of the suit and plan to go forward aggressively," said Stephen Kramarsky of law firm Dewey Pegno & Kramarsky LLP in Manhattan.
Indeed, the judge's ruling does not stop the suit from continuing. It merely denies the injunction and allows Universal to release "Bounce" on its originally scheduled day.
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Related URL: http://www.forbes.com/markets/newswire/2002/10/04/rtr742059.html