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April 25, 2007

Theres never a bad time to be a lawyer in the media business but April marked an especially good month. Just ask Warner Music Group chief Edgar Bronfman Jr.’s legal advisors:

  • On April 10 Bronfman fired a lawsuit at former employer Vivendi, the French media giant charging it with cutting his pension payments by about 65 percent.
  • Ten days later, on April 20 AnywhereCD, a two-week old online retailer, sued Warner Music for breach of contract. On the same day Warner Music filed an action asking the court to enforce its termination of contract with the company founded by Michael Robertson, former MP3.com founder.
  • Three days later, on April 23 Bronfman was sued for $100 million by Dick Snyder, a former CEO of publisher Simon & Schuster, who claimed he was never compensated for conceiving the 2003 buyout of Warner. In a statement, Bronfmans lawyer, Orin Snyder (no relation) described Snyders claims (the other one) as absolute fiction.
  • The next day, Bertelsmann, the German media giant settled with Warner for $110 million over Bertelsmanns role in funding the original Napster service.

Five suits in three weeks proves one thing. Google CEO Eric Schmidt was right. Lawsuits are just another negotiating tactic in the media industry.

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