Music publsihing company EMI has lost a lengthy case against cloud-based music storage company MP3tunes over copyright infringement.
According to Torrentfreak a US District Judge William Pauley ruled that the website did not "promote copyright infringement."
The verdict is considered by many as a landmark one which has the potential to shape up future debate over cloud-based storage.
The ruling could also impact the business of other cloud storage service providers including Amazon and Google.
Judge Pauley also ruled that MP3tunes service qualifies for "safe harbor" protection under the DMCA.
He said that MP3tunes had closed accounts that it found to be infringing copyright laws in the past and the site has complied with DMCA takedown requests as well.
"We’ve always operated our music service in a responsible manner and because of that the Judge determined that MP3tunes has protection under the DMCA as a service provider for both MP3tunes and Sideload.com (its search search engine)," MP3tunes founder Michael Robertson told Torrentfreak.
"Few companies have been able to stand up to the record labels’ attacks and get rulings from the court on key issues relevant to the future of the internet music and this 29 page ruling will set new precedent if it remains standing."
EMI also had something to cheer about.
The judge said that MP3tunes employees were guilty of copyright infringement as they stored EMI songs in their own accounts.
"We are pleased that MP3tunes and Michael Robertson have been held liable for infringing hundreds of sound recordings and musical compositions through their Sideload and MP3tunes website," EMI said.
"At the same time, we’re disappointed that the Court found that MP3tunes was entitled to a safe harbor for some of its conduct under the DMCA."
Both sides can, and are expected to, appeal.
