An organization representing independent record labels has filed a $5 million lawsuit against LimeWire, the defunct file-sharing network, for breach of contract.
In its suit, Merlin, a European group that works with more than 12,000 labels around the world, said that LimeWire had failed to make good on an agreement to pay its member labels a settlement comparable to the $105 million it agreed in May to pay the major record labels. The labels had won the settlement in a lawsuit filed against LimeWire in 2006 for large-scale copyright infringement on LimeWire’s peer-to-peer network.
Merlin was created in 2008 and was not a party to the major labels’ original suit. But in its suit, filed on Wednesday in United States District Court in Manhattan, Merlin said that in 2009 and 2010, LimeWire had signed agreements promising that if a settlement was reached with the majors, Merlin would be offered a settlement on the same terms.
A lawyer for LimeWire and its founder, Mark Gorton, did not respond to a phone call requesting comment.
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