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Internet Archive Resolves $621 Million Copyright Dispute with Major Labels

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Written byJennifer Anderson
Internet Archive Resolves $621 Million Copyright Dispute with Major Labels

The Internet Archive and several major record labels have reached a settlement in a $621 million copyright lawsuit concerning the digitization of 78 rpm records. This legal battle focused on the Internet Archive’s efforts to preserve and share these historical recordings through its Great 78 Project. The lawsuit, initiated by prominent music companies like Universal Music Group and Sony Music Entertainment, underscores the tension between preservation efforts and copyright laws.

Settlement Reached in Major Copyright Dispute

On September 15, attorneys from both sides filed a joint notice in California district court announcing the settlement. Although the terms remain confidential, the agreement resolves the lawsuit with future stipulations expected to be filed within 45 days. Both the Internet Archive and the Recording Industry Association of America confirmed the settlement, yet declined to provide further details.

The Great 78 Project at the Heart of the Lawsuit

The Internet Archive’s Great 78 Project, launched in 2017, aimed to digitize shellac discs from the 1890s to the 1950s. With support from audio preservationist George Blood, the project has digitized over 400,000 recordings. According to Brewster Kahle, founder of the Internet Archive, the initiative was designed to explore the vast array of music from the early 20th century, capturing the essence of America’s soundscape.

The dispute centered on 4,142 recordings, including works by legendary artists like Billie Holiday and Louis Armstrong. With statutory damages reaching $150,000 per recording, potential fines could have escalated to $621 million. The labels accused the Archive of mimicking an “illegal record store,” arguing that it undermined the value of authorized streams and royalties.

Legal Arguments and Cultural Implications

The Internet Archive defended itself as a digital research library, contending that its activities were protected under library carve-outs in the Copyright Act and the fair use doctrine, which allows for transformative and educational use of copyrighted material. However, the viability of these arguments remained uncertain, particularly after a similar case involving book publishers saw lower courts rule against the Archive.

Industry and Artist Reactions

While the lawsuit garnered broad support from the music industry, some artists sided with the Archive. In late 2024, musicians such as Kathleen Hanna, Tegan and Sara, and Amanda Palmer signed a letter opposing the suit, criticizing the industry’s approach to artist support and defending the Archive’s role in cultural preservation.

The settlement marks a significant moment in the ongoing discussion about digital preservation and copyright. As the music industry and preservationists move forward, the case highlights the need for a balance between protecting intellectual property and fostering public access to cultural history.