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The sound byte of music
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February 4, 1999: 9:43 a.m. ET
Net will be alive with MP3 music in Rykodisc deal with GoodNoise
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NEW YORK (CNNfn) - Independent record label Rykodisc said Thursday it will be singing a duet with Internet music seller GoodNoise Corp.
The deal calls GoodNoise (GDNO) to promote and sell music from Salem, Mass.-based Rykodisc's catalog in the controversial MP3 format, which allows computer users to download free CD-quality songs quickly from the Internet.
Record companies have argued that the technology often is used to make pirate copies of CD's.
Rykodisc said it anticipates the deal will lead to a reduction in unauthorized downloads and maintenance of the economic value of music.
Lars Murray, Rykodisc's director of new media, said "We want to give the MP3 consumer a legitimate alternative to unauthorized distribution, which is already pervasive on the Internet.
"This initiative provides for the artists and songwriters to get paid," Murray continued, "and affords us opportunities to partner with retail in new and innovative ways, as we have with other new formats, such as DVD, and CD in its early gestation."
Under the deal, GoodNoise will sell more than 175 songs from 50 Rykodisc artists at 99 cents per track. Additional tracks from the catalog will be released in the coming months.
Rykodisc will provide hot-links on its Web site to bring customers directly to the GoodNoise site. Consumers can then purchase selected tracks by artists such as Frank Zappa, Bruce Cockburn, Morphine and others under the Rykodisc label.
The companies didn't disclose financial terms of the agreement.
With the agreement, Rykodisc becomes the largest music label to adopt the MP3 format. Rykodisc said that according to SearchTerms.com, an Internet search site, MP3 is the second most popular search term on the leading Internet search engines.
In December, some of the biggest names in the music industry announced plans to join forces with leading technology firms to combat piracy in a coalition called the Secure Digital Music Initiative.
GoodNoise stock was up 3/8 to 8-5/8 Wednesday. 
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