2-12-01
The 9th Circuit Court
of Appeals in San Francisco today handed a temporary stay
of execution to the music sharing service Napster.
In an 18 page ruling, the court continued the stay on a lower
court preliminary injunction that would have effectively shut
the service down in July.
"We direct that the preliminary injunction fashioned
by the district court prior to this appeal shall remain
stayed until it is modified by the district court to conform
to the requirements of this opinion."
The victory for Napster is a minor however.While upholding
the stay, the 9th Circuit Court of Appeals also upheld two
of the lower court's key findings: 1.) Napster is not protected
under the Audio Home Recording Act (which allows consumers
to legally copy recordings for "non commercial"
use. 2.) That Napster knowingly assists its users in the infringement
of copyrighted material and has a financial incentive to do
so. The 9th Circuit Court of Appeals didn't comment conclusively
on Napster's defence under the Digital Millennium Copyright
Act (which protects ISP's from liability associated with the
activities of their users), stating, instead, that this would
have to be more fully explored during trial.
There is speculation that Napster will take the case to the
supreme court if necessary. They are certainly not hurting
for funds, having received a $50 million investment from Bertelsmann,
the parent company of BMG music. The investment was primarily
to help Napster convert the service to a fee based model.
Under the new business model, users would pay a monthly fee
for access to the service.
What is next for Napster and similar services? Would Napster
hold up under a fee based model? Post your thoughts on our
discussion board!
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