ANAHEIM, CALIF. — Cinram International Inc. recently upgraded 2,000 square feet of space in the Anaheim plant to implement an alliance with MP3.com Inc., a controversial supplier of online digital music. MP3.com also sells traditional prerecorded media. "This initiative is a vital part of Cinram's e-commerce strategy and is the first in a number of Internet-related programs that Cinram expects to announce," Isidore Philosophe, Cinram chairman and chief executive officer, said in a Nov. 4 news release.
Cinram will provide San Diego-based MP3.com with long-term exclusive worldwide manufacturing. MP3.com purchased 1.5 million Cinram units at C$13 each (US$8.86), comprising one Cinram common share and one warrant to acquire another Cinram share at C$15 (US$10.23). Cinram trades on the Toronto Stock Exchange and the Nasdaq National Market.
The Washington-based Recording Industry Association of America sued MP3.com in January for alleged copyright violations and sought to shut down MP3.com's "Beam-It" and "Instant Listening" services. MP3.com vowed to fight the federal suit, filed in New York.