Michael Robertson

Founder of MP3.com

• Born: April 4, 1966
• Birthplace: Orange County, California

Primary Company/Organization: MP3.com

Introduction

Long recognized as a groundbreaking entrepreneur and a businessman with a defiant streak, Michael Robertson has pushed the boundaries of the information technology industry. Best known for his creation of MP3.com, Robertson has exhibited a willingness to test the limits of technology, business, and copyright laws, which has placed him at odds with stakeholders both inside and outside the computer industry.

Early Life

Born in Orange County, California, in 1966, Michael Robertson experienced a difficult childhood that included much financial insecurity. He nevertheless was able to graduate from the University of California at San Diego (UCSD) in 1990 with a bachelor's degree in cognitive science. As a student at UCSD, he interned at the San Diego Supercomputer Center and was involved in a research project using Apple computers.

Life's Work

After graduating from UCSD, Robertson was employed as a Macintosh technical supporter at the San Diego Super Computer Center and wrote weekly columns for ComputerEdge magazine. These weekly articles were for a column called “Mr. Mac” and centered on the various developments associated with the Apple Macintosh. In 1994, Robertson founded MR Mac Software, a business that focused mainly on developing computer networking. Two years later, he started Media Minds, Inc., which created software for digital photo albums. In 1996, Robertson also started a search engine called Filez, also known as Z Company. Unlike other search engines, Filez indexed file transfer protocol (FTP) servers. Users of Filez could search for nearly five thousand files (a large number at the time) associated with movies, games, and graphics.

As Filez gained popularity, Robertson noticed that users preferred to locate audio files in the Moving Pictures Expert Group 1, Layer 3 (MP3) format. After listening to an MP3 music file, Robertson was deeply impressed with its clear sounds and quickly moved forward with a friend, Greg Flores, in securing the rights to the domain name MP3.com. Upon gaining ownership of the site in November 1997, Robertson was startled to see that nearly ten thousand people visited the site on its first day of operations.

Initially, Robertson offered information in the form of articles about MP3s. However, after receiving numerous requests about incorporating actual music files into the site, Robertson developed a format that allowed MP3 files to be accessed and downloaded. He began contacting emerging artists and bands that were seeking to publicize their work and offered to place their songs on the website. Within months, nearly eighteen thousand artists and one hundred thousand songs were on MP3.com, and the site had an astounding three hundred thousand visitors per day. By July 1999, the company offered the first public sale of its stock. The initial public offering (IPO) was the largest at the time.

Determined to expand his company, Robertson developed a plan whereby users could store their own music in individual music “lockers” at my.mp3.com. In order to access this service, each user had to place a personal CD in his or her computer, which would then automatically lead to a download of a digital version of the song from the MP3.com library, where eighty thousand songs were stored. The service immediately raised the ire of those in the music industry, who complained that Robertson was violating copyright laws. The five major record labels—Universal, BMG Entertainment, Sony Music Group, EMI Recorded Music, and Warner Music Group—all filed a lawsuit claiming copyright violations.

After major deliberations, on April 28, 2000, a New York State judge declared that the service offered by MP3.com was indeed in violation of copyright law. MP3.com ultimately lost $170 million in settlements with the record companies and music publishers. Robertson was forced to form licenses with the major record companies, and under these licenses royalties were properly administered. At the end of 2000, a resurrected MP3.com was launched as a subscription service for $49.95 per year. However, the company could not fully regroup from the financial losses it had suffered. In 2001, Robertson sold MP3.com to Vivendi Universal for $372 million.

Robertson soon turned toward the computer industry and started a company called Lindows. The central feature of this business was the creation of a desktop operating system that could function on both Linux and Windows platforms. Robertson hoped that this new operating system would rival Microsoft's dominant Windows. However, he once again faced scrutiny after Microsoft sued Robertson for trademark infringement. Microsoft officials believed that the name, Lindows, was too similar to the name of their established operating system, Windows. Judges in the United States supported Robertson. However, in Europe, Lindows software was banned as a result of these copyright issues. In April 2004, Robertson changed the name of Lindows to Linspire. Although this operating system offered greater specialization and affordability, it could not firmly establish itself among the competition. In 2008, Robertson sold Linspire to Xandros, a company that specialized in Linux desktop operating systems.

Robertson has been a major player in the Internet phone service industry, also known as Voice over Internet Protocol (VoIP). In 2003, he started SIPphone, a company that sold telephones that could be used on the Internet. After receiving further funding in 2006, Robertson launched the Gizmo Project through SIPphone. The features included VoIP service and allowed users to connect with noncomputer phones. The company progressed and launched software, including Gizmo Project and Gizmo5, both of which used open standards, that is, the ability to connect with multiple networks. In 2009, Robertson sold Gizmo5 to Google for around $30 million.

In 2007, Robertson once again turned to the medium of online music. He started MP3tunes.com, which provided remote storage for songs. Subscribers could download music and then, through cloud technology, play their selections from any location. In November 2007, EMI filed a copyright suit against Robertson, claiming that MP3tunes.com was legally required to obtain licenses from record labels before allowing the storage and subsequent playback of songs. For more than four years, Robertson was forced to deal with litigation arising from this case. Faced with no clear conclusion to the case, in May 2012 MP3tunes.com filed for bankruptcy.

One of Robertson's other music start-ups, DAR.fm, which began in 2010, has thus far escaped any lawsuits or confrontations with those in the music industry. The service is unique, allowing users to record streamlined radio shows, which can then be placed on an iPod, tablet, or smart phone. In 2015, he launched Onrad.io, a real-time search engine that indexes online radio streams from both brick-and-mortar radio stations and online-only stations. The service's database initially had access to music playing on more than 100,000 radio stations, allowing users to find their favorites more easily.

In 2019 Ideanomics acquired the assets of SolidOpinion Inc., a startup cofounded by Robertson in 2013. Ideanomics intended to integrate SolidOpinion's CommentsRadar engagement tracking technology and team into Ideanomics's influencer business unit, Grapevine Logic.

Personal Life

Robertson resides in San Diego and is the head of Robertson Education Empowerment Foundation, a nonprofit organization that offers students information about financial options pertaining to higher education. Since 2001, he has written a weekly electronic newsletter called Michael's Minute, which is available on his personal website. He provides weekly commentary about the technology industry and related topics.

Bibliography

Bigelow, Bruce V. “Michael Robertson on Gizmo5, and How the World Has Changed for Internet Startups.” Xconomy 1 Dec. 2009. Web. 20 Aug. 2012. Describes why Robertson's start-up, Gizmo5, was sold to Google.

Borland, John. “Lindows Chief Hears Net Phones Calling.” CNet News 6 Aug. 2003. Web. 20 Aug. 2012. A description of Robertson's move into the Internet phone service industry.

Haring, Bruce. Beyond the Charts: MP3 and the Digital Music Revolution. Los Angeles: JM Northern Media, 2000. Print. An in-depth look at the rise of the MP3 and the role that Robertson and MP3.com played in its evolution.

Levy, Steven. The Perfect Thing: How the iPod Shuffles Commerce, Culture, and Coolness Millennia Makeover. New York: Simon, 2006. Print. Examines the formation of the Apple iPod and provides a broad overview of the development of music on the Internet.

Reno, Jamie. “Michael Robertson Rolls the Dice.” San Diego Magazine June 2000. Web. 20 Aug. 2012. Examines the controversy surrounding MP3.com, providing solid background on Robertson's early career.

Richtel, Matt. “Market Place: Will Mp3.com Soar to No. 1 with a Bullet, or Languish in the Wall St. Cut-out Bins?” New York Times 20 July 1999: n. pag. Print. Overview of the IPO of MP3.com.

Robertson, Michael. “Michael Robertson: Digital Music's Bad Boy Was Right.” Interview by Greg Sandoval. CNet News 25 Aug. 2009. Web. 20 Aug. 2012. Interview with Robertson that delves into his various confrontations with the leaders of the music industry.

---. “Michael Robertson: Internationally Renowned Visionary, Technology Authority, and Entrepreneur Shares His Views.” Interview by Stephen Ibaraki. n.d. Canada's Association of I.T. Professionals. Web. 20 Aug. 2012. Robertson covers his college studies and the creation and development of his various start-up companies.

Sandoval, Greg. “MP3tunes.com Locker Service Files for Bankruptcy (Exclusive).” CNet News 10 May 2012. Web. 20 Aug. 2012. Reveals the troubles that MP3tunes faced since its inception in 2007.

Stone, Brad. “Michael Robertson Bucks the Music Industry Again.” Businessweek 23 Feb. 2011. Web. 20 Aug. 2012. Describes Robertson's development of MP3Tunes.com and DAR.FM. Provides background information on Robertson's business history.