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Court
of Appeals Rules Against Napster
Abridged Story
From a news story by
CNN San Francisco Reporter Rusty Dornin
February 12, 2000
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 courts
ruling but asked them to modify the decision. Record companies were
happy with the courts 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.
Below are a few of the many
web sites with information on this topic:

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