AnywhereCD is a new music distribution vendor that just started up in April. Here's how it works. You purchase a CD for $12. The CD is sent to you, and you are allowed to download a DRM free MP3 version of the CD you just bought. There is also a second option, and this is what got them in trouble. The second option is that you can decide to purchase just the MP3's for $3 less than adding on the CD. The RIAA filed a lawsuit against the company, and they caved in, dropping that option.
This is just another example of how the RIAA is shooting itself in the foot. Instead of shutting down this ingenious new music distribution ventures, they should embrace them, and work with the companies to maximize profit. The RIAA is still living in the 2oth century, and unless they warp into the 21st soon, they are going to be left behind.