Napster[1]

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Napster[1]

  1. 1. NAPSTER Business Law Briefing Shannon Brown Robyn McGonigle Erika L. LaMarch Christine Pedicone Kelly Ann Baker 29 November 2006
  2. 2. Introduction  Shannon Brown Background  Robyn McGonigle Plaintiff Case  Erika L. LaMarch Defendants Case  Christine Pedicone Outcome  Kelly Baker Impact
  3. 3. Background  Napster Current Standing Biography:  Publicly traded on NASDAQ as NAPS ticker symbol  Currently 145 Employees  Formerly called Roxio  500,000 subscribers  Music licensed from 2 million record companies http://www.hoovers.com/napster/-- ID__102418--/free-co-factsheet.xhtml
  4. 4. Technology  1987 MPEG-3 by Moving Picture Experts Group  Ripping  Computer  CD  MusicShare linkage through the internet
  5. 5. Issue  Is peer to peer file transfer infringement?  Fact  Industry data for CD’s since before and after Napster’s inception.
  6. 6. Introduction  Shannon Brown Background  Robyn McGonigle Plaintiff Case  Erika L. LaMarch Defendants Case  Christine Pedicone Outcome  Kelly Baker Impact
  7. 7. Prosecutors Facts  Case Law: Fonovisa Incorporated vs. Cherry Auction Incorporated  Decision: one cannot sell copied recordings at a flea market.  Direct Infringement through reproducing and distributing copyrighted material  Does RIAA vs. Diamond Multimedia Systems Inc. provide that;  “Napster was designed for the purpose of facilitating piracy, and…it’s users are using its service overwhelmingly to trade MP3 files.”  RIAA point: Napster’s link to music provides “substantial ongoing control.”
  8. 8. Introduction  Shannon Brown Background  Robyn McGonigle Plaintiff Case  Erika L. LaMarch Defendants Case  Christine Pedicone Outcome  Kelly Baker Impact
  9. 9. Defendant’s Facts  Sony Corporation of America vs. Universal City Studios Incorporated  Taping TV programs is noninfringing  AHRA Audio Home Recording Act  Personal use of digital copies  Defense:  Fair use definition  Every search engine could be liable  “[providing a link] is not enough to render the provider of the link contributorily liable for the content at the linked location”
  10. 10. BREAK
  11. 11. Agenda  Shannon Brown Background  Robyn McGonigle Plaintiff Case  Erika L. LaMarch Defendants Case  Christine Pedicone Outcome  Kelly Baker Impact
  12. 12. Decision  Ninth court Judge Marilyn Hall Patel of the Northern District of California  Supports RIAA vs. Diamond Multimedia Systems Inc.  Found the defense’s use of case law to be, “perplexing”, “irrelevant”, and “explicitly excluding PCs”.  Refers to Copyright Law statutes in response to Fair Use definition.  Disapproves of the centralized search  Napster’s linking service is found indirectly infringing  District Court finds direct infringement by Napster’s users  Preliminary court moves for injunction to stop the transfer of music.  Ninth Circuit affirmed preliminary court’s decision
  13. 13. Agenda  Shannon Brown Background  Robyn McGonigle Plaintiff Case  Erika L. LaMarch Defendants Case  Christine Pedicone Outcome  Kelly Baker Impact
  14. 14. Following Lawsuits  Scour.com provides videos and music and is simultaneously sued by Motion Picture Association of America in Southern District of New York.
  15. 15. Napster’s Current Standings  Music licensed from 2 million record companies  Publicly traded on NASDAQ as NAPS ticker symbol  Currently 145 Employees  Formerly called Roxio  500,000 subscribers  Competition  Apple  RealNetworks
  16. 16. 100 80 60 40 Net Income 20 Revenue Profit 0 -20 -40 -60 2004 2005 2006
  17. 17. For more information contact us  Shannon Brown sbrown@studentmail.immaculata.edu  Robyn McGonigle rmcgonigle@studentmail.immaculata.edu  Erika L. LaMarch elamarch@studentmail.immaculata.edu  Christine Pedicone cpedicone@studentmail.immaculata.edu  Kelly Baker kbaker1@studentmail.immaculata.edu
  18. 18. References  “Napster’s Last Stand?” by Alan Sutin and Wayne Josel  www.hoovers.com/napster/--ID__102418- -/free-co-factsheet.xhtml  “Ninth Circuit Upholds Napster Injunction, Narrows Scope Slightly” by Aspen Publishers
  19. 19. QUESTIONS

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