Liquid Audio, Inc. (Nasdaq: LQID) rose 1 3/4 to 12 1/2 Monday following reports that the online music company had signed agreements with Napster, Inc. and Road Runner.
The Road Runner agreement calls for Liquid Audio to provide the broadband service provider with music content, e-commerce capabilities and a co-branded area that allows subscribers to access digital music. Road Runner subscribers will be able to download entire albums through the service, the companies said.
Napster, which is being sued by record companies over alleged copyright infringement, is “very worried about keeping a customer base that is used to ‘all you can eat for free,’ ” Liquid Audio President and Chief Executive Officer Gerry Kearby told Reuters. The company licensed a technology that “allows a linkback to artists so they can get paid,” according to a report Monday.