The RIAA - the trade group for such big record labels as Sony, BMG, and EMI - are suing MP3.com over their new 'Mymp3' instant-listening service, which offers customers direct access to digital copies of CDs. Because the service doesn't require proof of ownership of the music, it only requires that you have the CD, it makes it easier to copy music that is not owned. Bob Cohn, chairman of Emusic, described the service as "mass copyright infringement." MP3.com retaliated with a suit accusing the RIAA of engaging in unfair business practices, defamation, trade libel, and interference with possible economic gains.
The RIAA are also currently embroiled in a legal battle with 'the people's favourite' Napster. Napster is a service that connects individual user's computers so they can swap MP3s without ever visiting a web site. The RIAA is alleging 'contributory copyright infringement'. Pundits point out that if the RIAA suit is successful, clones of the service, which exist already, will proliferate and will have to be pursued, resulting in an almost endless legal chase.
Only a few weeks ago AOL shut down an open-source project started by members of its own Nullsoft division, hours after it was first revealed to the public. "Gnutella", a file-sharing software tool, was shaping up to be even more potent than Napster in letting users share MP3 files over the net. However, a spokesperson for AOL announced "The Gnutella software was an unauthorised freelance project and the web site that allowed access to the software has been taken down."
Music fans are feeling the heat too. Last year, a 22-year-old Oregon student was convicted under America's NET (No Electronic Theft) Act of illegally distributing MP3 files, and sentenced to two years of probation and limits on his Internet access.
Meanwhile, the RIAA united with several technology companies to announce a solution: The Secure Digital Music Initiative. SDMI aims to be a digital music format with the built-in ability to restrict customer use and distribution of files, thus preventing illegal copying. For example, a recording company could permit the song file to be heard only once, or for just three days after it is downloaded.
Consumer groups have objected to the format, however, claiming that it violates user rights' to play the music anywhere, anytime. Still, no need to worry just yet, as SDMI - once planned for full phase-in by mid-2000 - shows no signs of being anywhere near ready for release.

MP3 PLAYERS
The end of last year marked a major milestone with the arrival at high-street level of the first MP3 players. Ranging in price from #129 to #369, sales have been steady rather than spectacular. However, leading retailers, such as Dixon's, are confident of the market developing rapidly.
The general consensus is that the original is still the best, with the Diamond Rio consistently out-performing its rivals. The latest version, the 500 64-MB USB player, retails at around #300.
Others to watch out for include the Samsung YP-E32 Yepp Player, the Sensory Science MP2100 Rave MP Media Player, and the Creative Labs Nomad 64MB MP3 Player.
In fact, MP3 players seem to be popping up everywhere - in watches from Casio, in cameras and mobile phones from Samsung, and in car radios from Sonicbox. Perfect for the gadget-meisters among us.