Major record companies have dismissed an offer by Napster to introduce fees for users and pay the music industry $1 billion over the next five years to settle the ongoing legal action for copyright infringement.
Major record companies have dismissed an offer by Napster to introduce fees for users and pay the music industry $1 billion over the next five years to settle the ongoing legal action for copyright infringement. Industry representatives described the offer by Napster as little more than a publicity stunt.

Napster’s opponents said that they have yet to see details of how a copyright-protected version of the service will work, how the company will secure the music files being swapped by its subscribers and how it will pay them, the artists and publishers.

Universal Music Group said the announcement by Napster failed to demonstrate a legitimate and secure business model that would protect and reward copyright owners.

Sony Music Entertainment added in a statement, “It’s obvious to anyone that follows the music business that the numbers Napster proposed on Tuesday do not make sense for a $40 billion industry.”

The IFPI, an organisation representing the international recording industry and affiliated to the Recording Industry Association of America, said:

"We are disappointed that Napster has resorted to a tactic which is little more than a public relations gambit. IFPI believes Napster should comply with the court order and stop offering infringing files to the public. This would create the right environment to discuss the negotiation of licenses and the development of legitimate business models."

See also:

Napster makes $1 billion settlement offer to record labels, OUT-LAW News, 21/02/2001

EU approves new copyright Directive, OUT-LAW News, 15/02/2001

Court rules against Napster and upholds injunction, OUT-LAW News, 13/02/2001

Reaction to the Napster ruling, OUT-LAW News, 13/02/2001

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