Court of Appeals Rules Against Napster

Abridged Story

From a news story by
CNN San Francisco Reporter Rusty Dornin

February 12, 2000

Napster Ruling

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Napster is a computer software company that lets users copy music. Over fifty million people have enjoyed the copyrighted music without paying a fee. The recording industry is unhappy with Napster. When users copy music free, the artists lose money.

The recording industry has sued Napster. A lower court handed down a decision against Napster. Then the case was taken to the Ninth Circuit Court of Appeals which is a higher court. The Ninth Court did not overturn the lower court’s ruling but asked them to modify the decision. Record companies were happy with the court’s ruling.

Hilary Rosen works for the Recording Industry Association of America. She says that companies like Napster are wrong both legally and morally. Rosen is very pleased with the court ruling. Some recording officials say that steps should have been taken sooner to protect copyrights. Others say that Napster is only one of many programs that offer free music.

Shawn Fanning is the founder of Napster. Recently he joined forces with Bertelsmann, a large publishing firm. Fanning and Bertelsmann plan to offer music users additional services. These new services will cost users and artists will get paid for the use of their music. Fanning wants to build a better company as soon as possible.

An injunction could shut down Napster within days. Fanning may appeal to the U.S. Supreme Court. For now, Napster fans are jamming as much music as possible.


Additional Notes:

Further notes and discussion

Shawn Fanning was eighteen when he developed the musical software that eventually became Napster. At the time, he was a freshman at Northeastern University in Boston, Massachusetts. Fanning dropped out of college and moved to Redwood City, California where he founded Napster. His critics have called him a pirate while his fans hail him as a revolutionary.

In December 1999, the Recording Industry of America sued Napster for copyright infringement. U.S. District Court Jusge Marilyn Patel ruled in July 2000 that Napster must rid its site of all copyrighted material. Then Napster appealed to the Ninth Circuit Court of Appeals. In the meantime, Fanning merged his company with Bertelsmann, a publishing company, to provide music for a fee. Although Napster did not win the appeal, the company has vowed to continue the fight.

As a result of the Ninth Circuit Court ruling, Napster has offered to settle the lawsuit by paying one billion dollars over a period of five years. The money, if accepted, will go to musicians, songwriters and record companies. In order for Napster to pay the one billion, users of the web site will pay $2.95 to $4.95 per month for limited access. People wanting unlimited access will be charged $5.95 to $9.95 per month.

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