New York - AnywhereCD, the digital music store start-up launched earlier this month by MP3.com founder Michael Robertson, and Warner Music Group have filed legal claims against one another in a dispute over whether the store has the right to sell Warner albums in the unprotected MP3 format, Reuters reported.

Shortly after launching AnywhereCD, which sells physical CDs packaged with MP3 versions of the album, in addition to standalone MP3 albums, Warner sent a cease and desist letter demanding the standalone MP3 albums be removed from the site.

AnywhereCD has now filed a breach of contract suit against Warner Music in New York, alleging that Warner acted "maliciously and in bad faith," and made false and damaging statements against the company in the press.

For its part, Warner has asked a judge to enforce its termination of its contract with AnywhereCD, saying the company "flagrantly violated" their contract.

"The whole fight doesn't make sense to me. I think we can sit down and settle it," AnywhereCD founder Michael Robertson told Reuters.

While fellow major label EMI has begun selling digital albums free of digital rights management (DRM), Warner so far has said it has no plans to follow suit.

Related Links:
http://tinyurl.com/2yhsj9 (Reuters)

http://www.anywherecd.com