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

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

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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