EMusic.com Sues MP3.com, Alleges Copyright Infringement

EMusic.com

(EMUS)

and several independent record labels filed a copyright infringement lawsuit against

MP3.com

(MPPP)

, an Internet music distributor.

The complaint alleges that MP3.com infringed on the exclusive digital rights of an undetermined number of EMusic's library of 13,000 albums. EMusic, which is based in Redwood City, Calif., said "although MP3.com has entered into settlement agreements with the five major record labels, they have chosen to ignore their infringing actions with respect to independent record labels."

The initial complaint was filed by EMusic and six of its partner labels, but EMusic expects more of its partners to join the suit. Representatives of MP3, San Diego, weren't immediately available for comment.

Shares of MP3.com fell 28 cents, or 7%, to $3.75 in recent

Nasdaq

trading. EMusic was unchanged at 31 cents.