-- Terra Firma investors have approved a £300 million ($495 million) equity injection into EMI . The injection may be part of a larger refinancing move, still months away, that would repay some of the debt owed to Citigroup. "Citi, which faces growing pressure from US regulators to speed up its 'toxic' asset sales, is thought likely to consider offers to buy its entire EMI debt position even it was forced to accept a discount to its face value. ... A high yield bond issue could repay part of Citi's debt at a discount of 20-40 per cent to face value. It would also replace loans maturing in 2014 with longer-dated bonds with fewer covenants imposing strict conditions on performance and financing." (Financial Times)

-- Day three of the Joel Tenenbaum file sharing case: the defense admits liability (though not in front of the jury), Professor Stanley Liebowitz testified about the financial damage caused by file sharing, and the court listened to Nirvana's "Come As You Are," one of the 30 songs Tenenbaum is accused of sharing on LimeWire. (Copyrights & Campaigns)

-- Inadvertent file sharing was a topic yesterday at a House Committee on Oversight and Government Reform. Remarked chairman Edolphus Towns: "As far as I am concerned, the days of self-regulation should be over for the file-sharing industry. In the last Administration, the Federal Trade Commission took a see-no-evil, hear-no-evil approach to the file sharing software industry. I hope the new Administration is revisiting that approach and I hope to work with them on how to better protect the privacy of consumers." (Copyright Alliance)

-- Knitting Factory plans to open a venue in downtown Reno, Nevada, around October. The expected capacity of the venue is 1,200. It will be the company's fifth venue and third in a secondary market (along with Spokane, Washington and Boise, Idaho). The locations in New York and Los Angeles, the smallest of the five, are currently going under renovations. (Reno Gazette-Journal)

-- "We want to serve the needs of all artists, but they may get different things out of our platform," said MySpace Music CEO Cortney Holt in an interview in Wallet Pop. "For an established artist that's already known, it's awareness. For the next level artist down, it's reinforcing or maintaining a relationship between albums. The Beatles released 11 albums in nine years. The band the All American Rejects have released two in six. And you start to think; how do I maintain that fanbase?" (Wallet Pop)

-- What happens to money from file sharing settlements and court decisions? The IFPI said money received from cases is "generally" put back into its anti-piracy campaign. But the $100 million-plus settlement with Kazaa, according to the Guardian, was distributed to the four majors (which gave it to artists based on their market share) while indie labels (through three umbrella organizations) are still disputing the disbursement of the settlement money. (The Guardian)

-- Spotify is called "a bright spot in the music industry's long, perilous journey to the digital world," in the current Economist. The article discusses whether or not streaming services can attain sustainable profits. By any measure, profitability is a necessary component of any company the record industry can count as one of its saviors. According to the article, only 40,000 of Spotify's six million users have upgraded to the paid, premium version (that's a 0.7% conversation rate) but that could improve once the mobile app, which will be available only to premium users, is launched. The last paragraph: "Free streaming will not save the music business. But neither will anything else in isolation." (The Economist)