MP3.com Inks Music-License Deal With Bowie

MP3.com has signed a licensing deal with David Bowie for the right to stream his music catalog over the Web, tying up a legal loose end stemming from the company’s embattled online music-locker service.

Bowie is represented by EMI Group-owned Virgin Records but owns the copyrights on some of his master recordings. This makes him one of a handful of major artists not covered by previous settlements worked out with major record labels over the streaming service, dubbed My.MP3.com.

MP3.com faces ongoing litigation from some independent labels and artists, although its potential liability from those cases will likely amount to a fraction of the settlements paid to date. In addition, the company continues to negotiate with several individual groups and artists, including Tom Petty and the Eagles, for rights to some of their hit songs.

“If they own their own stuff, in order for us to get the copyrights we would have to negotiate that with them,” said John Diaz, MP3.com’s senior vice president of industry relations, who works on licensing deals for the company.

MP3.com closed Tuesday at $6.22, down 75 cents on Nasdaq.