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MP3 Woes October
2000
Napster appeals to the precedent of Sony, but
MP3.com is threatened with massive costs.
As reported last month, Napster, the controversial
peer-to-peer file sharing system, refused to go down without a fight
(for the background to the case, click here,
and for Napster's reaction, click here).
Napster's latest response to the case filed by the Recording Industry Association
of America (RIAA) has pointed again to the precedent set by Sony's
release of the video cassette recorder in the late seventies. In
that case, an initial judgement against the company in favour of
the movie industry was overturned by the US Supreme Court in appeal.
Napster has been busy collecting evidence to demonstrate
that the issue is not so much about MP3 and music, but the technology
of enabling widespread file sharing across the Internet. The Association
of American Physicians and Surgeons, for example, has submitted
a brief suggesting that this technology could be used for public
benefit, and that Judge Marilyn Patel's decision could slow "the
dissemination of important therapeutic medical information"
(see www.napster.com for more
information).
According to a survey by Webnoize Research (www.webnoize.com),
57 percent of college students it questioned have used Napster,
and the company claims some 20 million users with an extra 250,000
new subscriptions a week (a result, it claims, of the publicity
of the lawsuit). Napster is now attempting to strike deals with
major record labels and, though none have responded as yet, it is
only a matter of time before someone finds this potential market
tempting.
Nonetheless, even if Napster stays afloat and proves
itself legit, the process could be expensive.
MP3.com had managed to settle with four of the five big labels (Sony,
BMG, EMI and Warner), but has run into trouble with Universal Music
Group. Although no final judgement has been reached, MP3.com has
been ordered to pay $25,000 per CD: with Universal bringing forward
4,740 copyright litigations, the online music company faces a possible
bill of $250 million. "Regardless of the aggregate judgment,
we intend to pursue an appeal of all appropriate issues related
to this lawsuit," MP3.com reported after the hearing. (www.mp3.com)
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