Imeem has been fined $1.77 million by a U.S. district court judge after the company failed to appear in court for copyright infringement. The lawsuit was filed in October 21 by The Orchard Enterprises.
Imeem decided to shut down after being sued before selling assets to MySpace for less than $1 million. The Orchard Enterprises told Imeem to pay them for profits made from music belong to labels or pay $150,000 per copyright infringement instance according to Liz Gannes of GigaOM.
A MySpace company spokesperson said that MySpace was not involved in the lawsuit personally. In that case, it is likely that MySpace acquired the assets that were not involved in Imeem’s lawsuit. Imeem’s technology acquired by MySpace will be rolled into MySpace Music.
Imeem raised a total of $35 million in VC funding from Sequoia Capital, Morgenthaler Ventures, and Warner Music. Warner Music had also previously sued Imeem.