In a ruling that is likely to have lasting effects on digital music distribution, a court has ruled that MP3.com's extensive music library violates copyright law.

On Friday, a U.S. Federal Court ruled that the San Diego, California-based company violated copyright law with the creation of its over-80,000 album database which allows users to store and access music via the Internet.

The ruling stems from a case filed in January by representatives of the music industry's major record labels (Time Warner, Inc.; Sony Music Entertainment; Seagram Co.'s Universal Music Group, and BMG) as part of the Recording Industry Association of America's anti-piracy crusade.

RIAA President and CEO Hilary Rosen issued a statement about the ruling simply saying, "We are pleased with the court's decision today."

MP3.com chairman and CEO Michael Robertson put a more positive spin on the decision, saying, "This is not a victory for the record labels. It's a loss. New technologies for delivering music are here to stay, and the technology trend is moving in only one direction: forward."

Observers didn't seem to share Robertson's positive view of the news, as MP3.com stock dipped sharply on Friday after word of the ruling.

The RIAA has also set its sights on Napster, Inc. and its role in online music distribution, as the RIAA also awaits a ruling in its lawsuit against that tech company.