RealTime IT News The Verdict is . . . Sell? Buy?

On Friday, it is likely that the stock price of (MPPP) will either soar or plunge. It is on this day that a federal judge in New York will hand down a decision on the merits of the massive lawsuit against from the Recording Industry Association of America (RIAA). Basically, the RIAA is accusing of violating industry copyrights.

You see, has a cool service that allows people to create an online database of their existing CD collection. So, if you have some old Bon Jovi CDs, you can zap these to your personal account and listen to them any time.

Of course, argues that there are no copyright problems. Apparently the technology scans a CD and determines if the user does really own it.

The RIAA suit is scary. The organization is asking for damages of about $10 billion. If such a judgment were rendered, would be easily bankrupted.

Under this legal cloud, it is no surprise that's stock has been a basket case, now sitting near an all-time low.

But, in the investment world, such situations can create great profit opportunities -- assuming you pick the right direction, of course. If you have the guts to play this stock before Friday, let's take a look at some of the scenarios.

First of all, can put its fate in the hands of the judge. If the judge rules against, the consequences are likely to be severe. The viability of the company will be in doubt. In the courtroom, nothing is guaranteed. After all, many thought OJ Simpson was guilty. A jury of his peers disagreed.

Of course, a win would be awesome. But I'm sure the RIAA will not give up and appeal. Thus, there will still be a cloud.

I think it is too risky for to allow a federal judge to roll the dice on the company's future. While a company like Microsoft can do such a thing, it would be very draining, costly and time-consuming for to fight this battle.

Rather, it makes more sense to pursue some type of settlement. This will end any uncertainty. Then, can continue to pursue building its company and shareholders will not need to wonder about unquantifiable liability exposure. On the whole, it should be positive for the stock price.

So, it will be interesting to see what does in the next few days. If I were them, I would be negotiating, not litigating.

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