Court of Appeals Rules Against Napster

Court of Appeals Rules Against Napster

From a news story by
CNN San Francisco Reporter Rusty Dornin

February 12, 2000

Napster Ruling

It wasn't the day the music died, but a death sentence for Napster's version of free music swapping appears close at hand.

Hank Barry, Napster CEO, remarked on the ruling. "We're disappointed with this ruling. Under this decision Napster could be shut down, even before a trial on the merits."

The Ninth Circuit Court of Appeals ruled that Napster must police its more than fifty million users and [to] stop them from sharing copyrighted material. [It’s] a nearly impossible task.

While the appeals court told a lower court to modify its injunction against Napster, it didn't overturn it. The recording industry called it a victory for all creators.

Hillary Rosen of the Recording Industry Association of America says, "A business model built on infringement is not only morally wrong but legally wrong, and we're very gratified that the Ninth Circuit today agreed with us 100 percent."

For now, Napster's is up and running, until the lower federal court modifies the injunction. But some music industry analysts say when it comes to stopping copyright infringement, [it’s] too little too late.

Ric Dube of Webnoize.com, "There are far too many applications that let people do what Napster does. Most of them are far more difficult to stop than Napster has been."

Napster says it will continue to provide music; only in the future users would have to pay a fee for it. Founder Shawn Fanning who recently made a deal with publishing giant Bertelsmann claims his dream won't end here. "We've been developing a Napster service that offers additional benefits to members of the community and importantly makes payments to artists. I'm focused on building this better service and I hope to have it in place this year."

But probably [it will] not [happen] before the injunction which could come within a matter of days or weeks. Napster says it will appeal, and possibly petition the Supreme Court. Until the order comes to shut down, millions of fans are likely to continue jamming the site before Napster is silenced.

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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