Media reports suggest that the $8 million deal includes the name and software and an undertaking to pay off Napster’s creditors.
Napster is still facing lawsuits from several record companies. Its file-sharing service has been dormant since July 2001. It went off-line to comply with a court order. Its attempts to re-launch as a subscription service were delayed by its failure to agree licensing terms with record companies.
In a statement, Bertelsmann’s CEO Joel Klein said; “We’re happy to see Napster move forward with Kondrad Hilbers at the helm. We are very committed to providing artists the best possible distribution opportunities for their work, and to providing consumers more choice and control.” He added, “Peer-to-peer is a transforming technology and we’re proud to have Shawn Fanning continue to work on its development.”