Rdio is pushing back against Sony in Rdio’s bankruptcy case. You may recall that Sony has sued 3 former Rdio executives for fraud in relation to Rdio’s sale to Pandora and Chapter 11 filing. Rdio has hired Winston Strawn to investigate whether Sony conspired with other record labels to fix prices in the subscription streaming service market. According to the attached motion filed in N.D. Cal. Bankruptcy Court, Rdio “believes that Sony and Orchard have engaged in anticompetitive conduct to fix and control prices and unreasonably restrain trade for the licensing, marketing, and use of music by services, like the Debtor, for the digital streaming of music to consumers worldwide.” The bankruptcy code provides fairly broad discovery for debtors to investigate creditor claims, so Rdio might actually be able to get some documents out of Sony. As the first major interactive service to go belly up, this may be the opening salvo in Sherman Act claims against the labels.
Sony has engaged Glenn Pomerantz from Munger Tolles, who represented SoundExchange in Web IV.