QUOTE(Illrigger @ May 10 2006, 15:22)

So that means you could start your own online music business (say, an online recording studio that allowed people to construct and distribute their own music - something not competing with iTunes, but having to do with music on the internet) and call it "Apple Music Maker" or somesuch, and Apple wouldn't sue YOU because of this precedent? Not likely. This was a bad ruling and will most likely be overturned.
No.
The terms of the deal were explicitly for sale of physical media and them becoming a record company. As Apple (computer) requires independent artists go through another company (CDBaby) they aren't breaking the record deal agreement. As for the physical media, well, digital files don't constitute this, obviously.
This was a money grabbing attempt by Apply Records.