Jane Martinson
AUnited States judge has dealt a blow to Napster by ruling that the upstart song- swapping company should stand trial for alleged copyright infringement.
If found liable, the firm, which employs only 18 people, could be liable for millions of dollars in damages.
The decision against Napster, in a case brought by the Recording Industry Association of America, comes as a further blow to the online music business after a legal ruling against MP3.com last month. Napster had argued that it acts as a service provider to its users and is therefore not liable for their actions.
Thousands of users are able to download software provided by the California-based company to access music stored on other personal computers.
The company acts as a kind of co-op, allowing users to swap the music they own. In its defence, Napster said it warns its customers to comply with all copyright laws. It has offered to block any consumer that is found to have illegally downloaded hits covered by copyright protection.
But US District Court Judge Marilyn Patel denied Napster’s claim for protection under the 1998 Digital Millennium Copyright Act late last Friday.
She rejected the company’s argument that it should be covered by the same copyright protection as an Internet service provider, which is not liable for the actions of its users.
The case is expected to set a benchmark for copyright protection in the Internet age.
The recording industry association, which represents all the main record labels, welcomed the ruling, which is expected to lead to a trial within the coming weeks.
In a statement after the ruling was delivered, Hillary Rosen, president of the association said: ”Napster just lost its last delaying tactic.
”This hearing was Napster’s attempt to escape responsibility for aiding and abetting wide-scale piracy and, not surprisingly, they lost.
”Napster is about facilitating piracy, and trying to build a business on the backs of artists and copyright owners,” she said.
Individual artists, including heavy metal group Metallica and rapper Dr Dre, have also brought lawsuits against Napster which allege copyright infringement.
Analysts believe that the fledgling company could face bankruptcy if the industry’s demands for damages worth $100E000 per infringement are up held by the courts.
However, the recording industry faces an uphill struggle against online companies that have taken advantage of the increasing popularity of MP3, which allows users to download music from the Web.
Other companies to offer an MP3 service include Wrapster, Spinfrenzy and Gnutella.