EMI's lawsuit agains MP3TUNES.com (a storage and time-shifting service, not P2P)

[Revtim]

EMI is suing mp3tunes.com, a service that allows one to store their mp3 files online, and stream them via a web page. There is no sharing of files with other users (short of sharing your username and password).

Here's one article about it:
http://consumerist.com/382824/emi-sa...c-files-online

Obviously, that article is clearly against EMI, but good luck finding one on the web that isn't.

From legal and ethical standpoints, is EMI justified?

I don't know a lot about the legal points, so I can share no opinion there. But ethically, I cannot see any reason for them to be against this. Surely there's enough actual piracy that results in lost sales to keep their legal department busy? Under what circumstances does this service result in lost sales for EMI? People only buying one copy of an album, instead of two, one for home and one from work? Is this a significant source of income for them?

Did they just see the letters "mp3" and reflexively sue?