Company V. Napster Case
Napster is a very popular web site that allowed many users to share music files. The way that Napster shared music files is through peer-to-peer sharing. These files that are called MP3’s (Motion Picture Expert Group 1, Audio Layer 3: an algorithm that compresses digital music files) were shared between registered users anonymously at no cost to the users. The format of MP3’s reduces the files allowing users to quickly and easily share these files. MP3’s can also be copied multiple times without damaging the quality of the file. Napster allows registered users to download a “Music Share” software that will allow peer-to-peer sharing of the MP3 files. There is a large hub that all registered users had access to through the music sharing software where Napster would manage the download process.
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Napster never gained any revenue through charging registered users for the music sharing software or by downloading music. The way that Napster collected revenue was by advertisers. Advertisers would pay Napster to infuse their advertisements on Napster’s web site. There was a law suit against Napster that is referred by A&M Records, Inc. vs Napster, Inc. Although this case is called A&M Records, Inc. vs Napster, Inc. it consisted of many record companies that are members of the Recording Industry Association of America (RIAA). The law suit was filed because it is a direct infringement of the record companies’ copyrights. The law suit was filed against Napster and not individual users because it was determined that Napster was responsible for the file
Napster never gained any revenue through charging registered users for the music sharing software or by downloading music. The way that Napster collected revenue was by advertisers. Advertisers would pay Napster to infuse their advertisements on Napster’s web site. There was a law suit against Napster that is referred by A&M Records, Inc. vs Napster, Inc. Although this case is called A&M Records, Inc. vs Napster, Inc. it consisted of many record companies that are members of the Recording Industry Association of America (RIAA). The law suit was filed because it is a direct infringement of the record companies’ copyrights. The law suit was filed against Napster and not individual users because it was determined that Napster was responsible for the file