Edel represents popular artists such as Craig David and 2Step. Under the deal, music by Edel artists will become available to Napster users who agree to the company’s new subscription-based service, although fees have yet to be agreed. Unlike the existing service, Napster will make available MP3 files taken from Edel's master recordings, instead of users making available MP3 files taken from their own CDs.
The deal follows a recent agreement with Germany’s Bertelsmann AG, owner of the record label BMG. Under that deal, the record company has agreed to drop its lawsuit against Napster when Napster begins charging users for the MP3 swapping service. The new deal with Edel is less significant because Bertelsmann is one of the world’s five largest non-independent record companies which are together suing Napster for copyright infringement. Unless Napster can win or, with Bertelsmann’s help, settle the legal action with each of the four other major record labels, its future still hangs in the balance.
Meanwhile, Napster is suing a souvenir manufacturer for trademark infringement for selling unofficial t-shirts and caps bearing Napster’s cat logo with slogans like “Download This”.
The lawsuit against Napster for copyright infringement is currently awaiting a ruling by a US appeals court.