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FullAudio gets CD burning rights from Warner

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CIOL Bureau
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LOS ANGELES: Digital music company FullAudio said on Monday it struck a deal

with the music arm of AOL Time Warner Inc., allowing users to download Warner

Music tracks from FullAudio's service and burn their own compact discs.

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In April, Chicago-based FullAudio and Warner had announced a more limited

licensing deal that does not cover CD burning. Four of the major music labels

have licensed music to FullAudio for its subscription service, called Musicnow.

That service is available through some Web sites operated by radio giant

Clear Channel Communications Inc. FullAudio provided the infrastructure and

content for the subscription to Clear Channel and other distributors, which then

determine their own pricing for the service.

Musicnow competes against major label-backed services like MusicNet and

Pressplay as well as start-up Listen.com's Rhapsody service. These services are

all offering alternatives to free song-swap services like Napster, which has

been idled by a copyright infringement suit and has agreed to be acquired by

Bertelsmann as it emerges from bankruptcy.

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The big labels have begun licensing their content more readily to smaller

competitors since antitrust regulators showed concern over whether the market

for online distribution was being fairly opened.

(With additional reporting by Sue Zeidler)

(C) Reuters Limited.

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