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Inquiry into music downloading

The BBC reports that the US Department of Justice has launched an inquiry into allegations of price fixing by top music labels on their charges for digital downloading. The background to these allegations stems from the major record labels being at loggerheads with Apple over what it charges for tracks sold through its iTunes online service. The article observes that "The digital music market has really taken off in the past couple of years, with revenues from digital sales topping the $1bn mark last year. Its growth has come at a time when sales of CDs and other traditional music formats are falling."

For further discussion see the Tech Law Prof Blog.

How should the major music labels respond to this trend?

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