Napster fate hangs in the balance

The immediate fate of Napster will be revealed this evening when a US court will decide whether the online music file-sharing community should be shut down.

The announcement by the ninth US Circuit Court of Appeals in San Francisco on Friday sparked a flurry of activity on Napster's website at the weekend, as music fans flocked to stock up on free songs.

Nearly 10,000 users logged on to each of Napster's 100 servers on Sunday, sharing nearly two million free MP3 song files, compared to a sample taken last July which found 7,300 users sharing 800,000 files.

Last October Napster escaped closure after three judges from the same appeals court decided not to reinstate an earlier injunction that prevented the company from offering its service. The injunction was to have barred users from swapping copyrighted material belonging to the five major recording companies that are suing Napster for alleged copyright infringement.

Instead, the appeals court said it would take time to decide what to do with the music file-swapping company that counts more than 38 million members worldwide.

The outcome of that decision, which will be announced this evening at 7pm GMT, could either mean the original injunction is upheld, or that Napster would be free to continue offering its service until its wider-ranging court battle with the recording industry is heard at a later date.

On its website, Napster said it has great confidence in its legal position and will post a statement about the decision shortly after the court issues its ruling.

But according to Hilary Rosen, president and chief executive of the Recording Industry Association of America (RIAA), the trade group representing record labels against Napster, the court's decision may "finally clear the way for the legitimate online marketplace to thrive in an environment that encourages both creativity and a respect for copyright".

Rosen said in a statement: "We're confident that the Ninth Circuit understands the severity of our claim and will uphold the decision of the US. Federal Court."

Since the judges' initial decision last October, Napster has signed an agreement with German entertainment giant Bertelsmann to begin charging users for the service.

Bertelsmann, which owns BMG, one of the recording labels suing Napster, agreed to drop its lawsuit once Napster introduces a subscription-based model sometime in the summer.

See also:

Napster: A musical revolution online

Napster, the website, was built as a central host for users wishing to swap MP3 music files. It has sparked an almighty legal battle over its legitamacy and has changed the way people obtain music.  01 May 2001

Europe delivers copyright blow for Napster

Members of the European Parliament have voted to accept proposals, which ban Napster-like copying systems, just days after a US court rejected Napster's appeal in its fight against US music giants.  14 Feb 2001

Napster fears closure

Napster has warned that yesterday's court ruling that it must stop its users from swapping copyrighted music files would lead to the closure of the site and has vowed to continue fighting its wider legal battles with the music industry.  13 Feb 2001

Napster signs European indie giant

Europe's largest independent record company, edel, has signed with Napster and Bertelsmann to allow its music to be traded through Napster's fee-based service.  03 Jan 2001

Napster blocked by music website

Independent music website emusic.com has begun using software that identifies and blocks its songs from being distributed across file-swapping site Napster's network.  22 Nov 2000

Tide turns in Napster's favour

The tide of opinion appears to be swinging in Napster's favour as large IT industry players jump on the music file-swapping bandwagon.  09 Nov 2000

Napster plans to charge users

Updated: Napster, the darling of the internet underground, plans to begin charging users for its service under a subscription-based model in partnership with German entertainment giant Bertelsmann.  01 Nov 2000

Napster survives latest court battle

Napster has survived its latest court battle after three US judges decided not to reinstate an injunction against the file sharing system that would have effectively closed it down.  03 Oct 2000

MP3: making sweet music on the net

The music industry has been shaken up by the emergence of MP3-based music websites such as Napster. Critics accuse them of facilitating piracy while advocates say they make it easier for unsigned musicians to have their music heard. We look at what all the fuss is about.  08 Aug 2000

Like this story? Spread the news by clicking below:

 del.icio.us     Digg this     reddit!