Los Angeles
– Streaming music service imeem, which recently sold certain assets to News
Corp.’s (NYSE: NWS) MySpace, has been hit with a $1.77 million copyright infringement
judgment, GigaOM reported.

The suit was originally filed by digital music
distributor The Orchard (NASD: ORCD) in October, and the default judgment was issued by U.S.
District Judge Denny Chin on Dec. 17 after imeem failed to appear in court.

spokesperson for MySpace, which is rumored to have paid less than $1 million
for imeem, told GigaOM that the company was not involved in the lawsuit.

MySpace’s acquisition included only "certain assets" of imeem, which apparently
did not include thousands in royalty payments owed to independent artists.

GigaOM speculated that the deal could also have been structured by MySpace to
include only assets that "were not being sued."


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(DMW previous coverage)


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