Napster: Loses Court Battle, Offers $1 Billion Settlement
To Quote...
"This is a clear victory. The court of appeals found that the injunction is
not only warranted, but required. And it ruled in our favor on every legal
issue presented."
Hilary Rosen, President and Chief Executive of the Recording Industry
Association of America
"We are delighted that the court has upheld the rights of all artists to
protect and control their creative efforts. All we have ever asked is that
artists be able to control how, when and in what form their creativity is
distributed through these channels." Metallica
"Metallica Hails Napster Decision as Music Downloads Continue"; CNN.com, February 13, 2001 http://www.cnn.com/2001/LAW/02/12/napster.decision.05/
"The importance of Napster is a downward trajectory at this point."
(Eric Scheirer, market research analyst, Forrester Research)
"Napster's Clouded Future"; The New York Times, February 14, 2001 (Matt Richtel);
http://www.nytimes.com/2001/02/14/technology/14NAPS.html
"This decision is a victory for all those who want to develop a legitimate
on-line music business."
Jay Berman, Chairman and CEO of International Federation of the Phonographic
Industry; IFPI Press Release, February 12, 2001; http://www.grayzone.com/ifpi21201.htm
"We divide the world into two kinds of people: those who respect the rights
of creators and owners of intellectual property to determine how and when
their property is used, and those who do not."
Richard Parsons, AOL Time Warner Co-Chief Operating Officer; "A House Divided Cannot Stand";
Remarks to the Recording Academy Entertainment Law Initiative; Regent Beverly, California - February 20, 2001.
Read his entire speech: http://www.aoltimewarner.com/press/speeches/parsons/Parsons022001.htm
A federal appeals court ruled February 12 that the music-swapping service
Napster must stop trading in copyrighted materials and may be held liable for
"vicarious copyright infringement."
Napster must prevent users from gaining access to copyright content through
its lists of songs archived by the service's users, the 9th U.S. Circuit of
Appeals said. Napster officials said such a ruling could force them to shut
down the service.
Napster press conference transcript: http://www.napster.com/pressroom/pr/010212.html
In a 58-page opinion, a three-judge panel told a lower court judge to rewrite
her injunction to focus more narrowly on the copyrighted material. The panel
also directed the Redwood City-based company to remove links to users trading
copyrighted songs stored as MP3 files.
(Read the court's decision:
http://news.findlaw.com/cnn/docs/napster/napsterop0212.pdf
Webnoize (http://www.webnoize.com), a web site that monitors the digital
entertainment industry, estimated that 250 million songs were downloaded using
Napster on the weekend following the court's decision. Webnoize.com claimed
that, on average, 1.5 million users were logged on to Napster at any one time.
However, on February 20, with a stark admission that it cannot survive alone,
Napster proposed a $1 billion settlement with the major and independent record
labels to end the lawsuit threatening to shut down the free Internet
song-swapping service. Under the proposed settlement, $150 million would be
paid annually for the first five years to the major record labels - Sony,
Warner, BMG, EMI and Universal - with an additional $50 million allotted
annually for independent labels.
IFPI General Counsel Allen Dixon was not impressed: "We are disappointed that
Napster has resorted to a tactic which is little more than a public relations
gambit," said Dixon in a terse press release issued shortly after Napster's
splashy settlement offer, which was made at a highly publicized press
conference and not directly to the record companies. On February 23, Napster
asked a full federal appeals court to review the three-judge decision that
could shut it down, saying that an injunction against the company was too
broad and violated its rights to free speech.
Meanwhile, the Recording Industry Association of America (RIAA) sent notices
to 75 Internet Service Providers (ISPs) that supply connections to operators
asking them to "immediately remove or block access to the infringing material
offered via this server." The notices were delivered to ISPs nearly a week
after the ruling. "The 9th Circuit court decision confirmed our view that
this activity is infringing," said Jonathan Whitehead, anti-piracy counsel for
the RIAA. At press time, between 20 and 30 of the ISPs had blocked access to
Napster.
For the latest updates please visit the Findlaw.com website at
http://www.findlaw.com/napster/index.html.
Read More About Napster:
Napster to Start Screening Copyrighted Material; CNN.com/LAW, March 2, 2001
http://www.cnn.com/2001/LAW/03/02/napster.hearing.03/index.html
Why Napster Must Die; ZDNet, February 22, 2001 (David Coursey)
http://www.zdnet.com/anchordesk/stories/story/0,10738,2688600,00.html
Napster Offers Record Companies $1 Billion to Settle; CNN.com/LAW, The Associated Press, February 20, 2001
http://www.cnn.com/2001/LAW/02/20/napster.settlement.ap/index.html
Excellent overview from CNN.com, February 20, 2001; Napster: Stealing or Sharing?
http://www.cnn.com/SPECIALS/2001/napster/
Legal Expert Sees Light Focused on Napster Users; The New York Times, February 16, 2001 (Carl S. Kaplan)
http://www.nytimes.com/2001/02/16/technology/16CYBERLAW.html?printpage=yes
The Ninth Circuit's Decision in Napster: The Definitive End to an Era
FindLaw's Writ, February 15, 2001 (Marci Hamilton) (hamilton02@aol.com)
http://writ.news.findlaw.com/hamilton/20010215.html
Napster Users Make Plans for the Day the Free Music Dies
The New York Times, February 13, 2001 (Amy Harmon)
http://www.nytimes.com/2001/02/13/technology/13MUSI.html?pagewanted=all
Napster to Launch Fee-Based Service; IDG.net, January 29, 2001 (Joris Evers)
http://www.cnn.com/2001/TECH/computing/01/29/fee.based.napster.idg/index.html
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