(quote from the article pointed to by spoon)
QUOTE
MP3.com was originally launched in 1997 as one of a number of sites that allowed music fans to download music for nothing over the internet. It later became one of the first illegal sites to reach a settlement with the major record companies and concentrate on legitimate downloads
I never remember mp3.com promoting pirate downloads. In fact, they even required proof
of license before allowing you to post "cover" songs (performed by you but originally
written by/for another group). I can't attest to their first year since I didn't run across
them until 1998.
The one place they tripped up (what was he THINKING?) was their scheme where
you "prove ownership" of a CD by letting mp3.com remotely identify it in your CD-drive,
then thereafter you could download tracks from that CD at will from anywhere, even
when the CD was from a publisher other than mp3.com.
as to format, the founder's official position was that they were open to switching to something better at some point, not that it carries any weight since he cashed in and moved on.