Warner Music sued media-sharing site IMEEM Tuesday for infringing the copyright of its artists, building a base of 16 million users by capitalizing on the “illegal use of ‘free music,'” according to Reuters. The label is asking for up to $150,000 in damages for each instance of infringement, the maximum allowed under copyright law.
IMEEM allows members to upload their MP3 collections and stream them to other users. Other companies such as Streampad, Project Playlist, and MediaMaster have followed on this model, apparently hoping it was a loophole in the law.
We were holding this story after getting tipped off to it this afternoon, waiting for replies from IMEEM or its investors at Morganthaler Ventures. Now that it has broken we update this piece if any of them get back to us.