DRM-free music retailer AnywhereCD and Warner Music Group have filed lawsuits against each other, both of which will ultimately determine whether the online store had a right to sell MP3 downloads from WMG’s catalog without copy protection software, Reuters reports (via Easybourse). AnywhereCD launched about two weeks ago, selling both CDs as well as MP3s without DRM software. While WMG had no problem with the San Diego start-up selling its artists’ CDs over the web, it abruptly removed its digital music within hours of AnywhereCD’s site going live, alleging that it had not granted permission to sell digital music downloads without anti-piracy software. AnywhereCD claimed it had the right to do so. The company filed a suit Friday in U.S. District Court in New York against the fourth largest record label for breach of contract, business defamation and trade libel. WMG responded with its own legal action, asking the court to affirm its contract termination with AnywhereCD.

• — DRM-Free Digital Music Store AnywhereCD Launches; Warners Pulls Catalog Immediately