> https://en.wikipedia.org/wiki/UMG_Recordings,_Inc._v._MP3.co....

This is a district court case (i.e. one that doesn't set precedent) where the record companies liked the result, which also effectively bankrupted the defendant. One of the media companies then bought the defendant, causing the case to not be appealed.

It's not obvious they would have lost on appeal. The district court largely ignored the Sony Betamax case and what MP3.com was doing was effectively operating tape recorder with a longer wire on it.