Out-Law / Your Daily Need-To-Know

A US Court of Appeals has overturned last week’s court order that prohibited Napster from restarting its file-swapping services. The latest ruling does not allow Napster complete freedom to operate, since the restrictions intended to protect copyright interests that were set out in an earlier court order continue to limit its activities.

Napster has not indicated when it hopes to recommence its services, but it has sent an e-mail to all users giving a broad explanation of the new subscription scheme, which it plans to implement in order to comply with copyright requirements. The e-mail states:

“Over half of what you pay Napster will go directly to the artists, songwriters and other rights holders whose works are transferred between members of the Napster community. This has generated interest from a number of artists who previously were uncomfortable having their music shared over Napster or other file-sharing services.”

Despite this most recent ruling, the future of Napster’s on-line operations may still be curtailed by the Appeals Court. A final ruling on this issue is expected in September, in which the court may still conclude that the measures taken by Napster do not satisfactorily protect copyrighted works.

The attorney representing the Recording Industry Association of America (“RIAA”), which is leading the case against Napster, has responded to the ruling by stating:

“It is important to note that today’s ruling does not change in any way the fact that Napster must prevent copyrighted works from appearing on its system as previously ordered by the Court.”

We are processing your request. \n Thank you for your patience. An error occurred. This could be due to inactivity on the page - please try again.