SAN FRANCISCO, Feb. 12 — A federal appeals court ruled Monday that the music-swapping service Napster must stop trading in copyrighted material and may be held liable for “vicarious copyright infringement” when it fails to patrol its system.
NAPSTER MUST PREVENT users from gaining access to potentially infringing content on its search index, the 9th U.S. Circuit Court of Appeals said, a ruling that Napster officials have said could force them to shut down the service.
In a 58-page opinion, a three-judge panel told a lower court judge to rewrite her injunction to focus more narrowly on the copyrighted material. The panel also directed the Redwood City-based company to remove links to users trading copyrighted songs stored as MP3 files.
The appeals court said it was apparent that “Napster has knowledge, both actual and constructive, of direct infringement.”
Napster has argued it is not to blame for its subscribers’ use of copyrighted material, citing the Sony Betamax decision of 1984, in which the U.S. Supreme Court refused to hold VCR manufacturers and videotape retailers liable for people copying movies.
But the appeals court said no such protection extends to Napster because the company clearly knew its users were swapping copyrighted songs.
Napster can stay in business until U.S. District Judge Marilyn Hall Patel retools her injunction, which the appellate court called overly broad.
“We, therefore, conclude that the district court made sound findings related to Napster’s deleterious effect on the present and future digital download market,” the appeals court ruled. “Having digital downloads available for free on the Napster system necessarily harms the copyright holders’ attempts to charge for the same downloads.”
Napster can stay in business until U.S. District Judge Marilyn Hall Patel retools her injunction, which the appellate court called overly broad.
"This is a clear victory,” said Hilary Rosen, president and chief executive of the Recording Industry Association of America. “The court of appeals found that the injunction is not only warranted, but required. And it ruled in our favor on every legal issue presented.
BAD NEWS FOR NAPSTER
The ruling is not good news for Napster based on initial reactions from copyright lawyers, as Napster has taken a proactive role in facilitating music file swapping.
“It’s not just a passive service,” says Richard Gray, an intellectual property lawyer, explaining, for example, that Napster will switch customers to a different computer server if a file download is interrupted. “It’s effectively an air traffic control tower.”
Millions of users had flooded the company’s computer servers this past weekend to download free music, fearing an immediate shutdown of the service that has changed the face of music. Napster has an estimated 50 million users.
Webnoize, which monitors the digital entertainment economy, estimated that 250 million songs were downloaded using Napster over the weekend. Webnoize said that, on average, 1.5 million users were logged on to the system at any one time.
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http://www.msnbc.com/news/528921.asp
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"I'd like an order of fries, a quarter pounder with cheese, I love the light in your eyes, would you go out with me please? I am in love with a McDonald's Girl, she has a smile of innocence so tender and warm, she is an angel in a polyester uniform."
NAPSTER MUST PREVENT users from gaining access to potentially infringing content on its search index, the 9th U.S. Circuit Court of Appeals said, a ruling that Napster officials have said could force them to shut down the service.
In a 58-page opinion, a three-judge panel told a lower court judge to rewrite her injunction to focus more narrowly on the copyrighted material. The panel also directed the Redwood City-based company to remove links to users trading copyrighted songs stored as MP3 files.
The appeals court said it was apparent that “Napster has knowledge, both actual and constructive, of direct infringement.”
Napster has argued it is not to blame for its subscribers’ use of copyrighted material, citing the Sony Betamax decision of 1984, in which the U.S. Supreme Court refused to hold VCR manufacturers and videotape retailers liable for people copying movies.
But the appeals court said no such protection extends to Napster because the company clearly knew its users were swapping copyrighted songs.
Napster can stay in business until U.S. District Judge Marilyn Hall Patel retools her injunction, which the appellate court called overly broad.
“We, therefore, conclude that the district court made sound findings related to Napster’s deleterious effect on the present and future digital download market,” the appeals court ruled. “Having digital downloads available for free on the Napster system necessarily harms the copyright holders’ attempts to charge for the same downloads.”
Napster can stay in business until U.S. District Judge Marilyn Hall Patel retools her injunction, which the appellate court called overly broad.
"This is a clear victory,” said Hilary Rosen, president and chief executive of the Recording Industry Association of America. “The court of appeals found that the injunction is not only warranted, but required. And it ruled in our favor on every legal issue presented.
BAD NEWS FOR NAPSTER
The ruling is not good news for Napster based on initial reactions from copyright lawyers, as Napster has taken a proactive role in facilitating music file swapping.
“It’s not just a passive service,” says Richard Gray, an intellectual property lawyer, explaining, for example, that Napster will switch customers to a different computer server if a file download is interrupted. “It’s effectively an air traffic control tower.”
Millions of users had flooded the company’s computer servers this past weekend to download free music, fearing an immediate shutdown of the service that has changed the face of music. Napster has an estimated 50 million users.
Webnoize, which monitors the digital entertainment economy, estimated that 250 million songs were downloaded using Napster over the weekend. Webnoize said that, on average, 1.5 million users were logged on to the system at any one time.
Want to learn MORE?
http://www.msnbc.com/news/528921.asp
------------------
"I'd like an order of fries, a quarter pounder with cheese, I love the light in your eyes, would you go out with me please? I am in love with a McDonald's Girl, she has a smile of innocence so tender and warm, she is an angel in a polyester uniform."
