EMI can distribute their copyrighted works anyway they wish. I don't think that's at issue.
What is at issue is the www.Sideload.com music search engines which doesn't host any files, but simply links to various places. EMI is complaining that all the links on Sideload.com are unauthorized and complains about links to Rapidshare to illustrate their point. However if they're placing files on Rapidshare and then inviting people to download them from that location, then they can't very well claim all links to Rapidshare are unauthorized. Furthermore, they have admitted that it's impossible to know whether a link is authorized or not by looking at it. Thus Sideload.com's operator MP3tunes can't be expected to police every link. Besides the DMCA explicitly says search engines don't have that obligation.
It should be noted that EMI is also complaining about the personal music storage MP3tunes offers.
-- MR