NAPSTER
Business Law Briefing
      Shannon Brown
     Robyn McGonigle
      Erika L. LaMarch
     Christine Pedicone
      Kelly Ann Baker

                          29 November 2006
Introduction
                    Shannon Brown
                         Background

   Robyn McGonigle
       Plaintiff Case

   Erika L. LaMarch
       Defendants Case

   Christine Pedicone
       Outcome

   Kelly Baker
       Impact
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
Technology
   1987 MPEG-3 by
    Moving Picture
    Experts Group

   Ripping
       Computer
       CD


   MusicShare linkage
    through the internet
Issue
   Is peer to peer file transfer infringement?

   Fact
       Industry data for CD’s since before and after
        Napster’s inception.
Introduction
   Shannon Brown
       Background

                 Robyn      McGonigle
                     Plaintiff Case
   Erika L. LaMarch
       Defendants Case
   Christine Pedicone
       Outcome
   Kelly Baker
       Impact
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.”
Introduction
   Shannon Brown
       Background

   Robyn McGonigle
       Plaintiff Case

                    Erika L. LaMarch
                        Defendants Case

   Christine Pedicone
       Outcome

   Kelly Baker
       Impact
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”
BREAK
Agenda
   Shannon Brown
       Background
   Robyn McGonigle
       Plaintiff Case
   Erika L. LaMarch
       Defendants Case

                 Christine       Pedicone
                        Outcome
   Kelly Baker
       Impact
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
Agenda
   Shannon Brown
       Background

   Robyn McGonigle
       Plaintiff Case

   Erika L. LaMarch
       Defendants Case

   Christine Pedicone
       Outcome

                         Kelly   Baker
                             Impact
Following Lawsuits
   Scour.com provides videos and music and
    is simultaneously sued by Motion Picture
    Association of America in Southern District
    of New York.
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
100

80

60

40
                           Net Income
20
                           Revenue
                           Profit
 0

-20

-40

-60
      2004   2005   2006
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
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
QUESTIONS

Napster[1]

  • 1.
    NAPSTER Business Law Briefing Shannon Brown Robyn McGonigle Erika L. LaMarch Christine Pedicone Kelly Ann Baker 29 November 2006
  • 2.
    Introduction  Shannon Brown Background  Robyn McGonigle Plaintiff Case  Erika L. LaMarch Defendants Case  Christine Pedicone Outcome  Kelly Baker Impact
  • 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.
    Technology  1987 MPEG-3 by Moving Picture Experts Group  Ripping  Computer  CD  MusicShare linkage through the internet
  • 5.
    Issue  Is peer to peer file transfer infringement?  Fact  Industry data for CD’s since before and after Napster’s inception.
  • 6.
    Introduction  Shannon Brown Background  Robyn McGonigle Plaintiff Case  Erika L. LaMarch Defendants Case  Christine Pedicone Outcome  Kelly Baker Impact
  • 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.
    Introduction  Shannon Brown Background  Robyn McGonigle Plaintiff Case  Erika L. LaMarch Defendants Case  Christine Pedicone Outcome  Kelly Baker Impact
  • 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.
  • 11.
    Agenda  Shannon Brown Background  Robyn McGonigle Plaintiff Case  Erika L. LaMarch Defendants Case  Christine Pedicone Outcome  Kelly Baker Impact
  • 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.
    Agenda  Shannon Brown Background  Robyn McGonigle Plaintiff Case  Erika L. LaMarch Defendants Case  Christine Pedicone Outcome  Kelly Baker Impact
  • 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.
    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.
    100 80 60 40 Net Income 20 Revenue Profit 0 -20 -40 -60 2004 2005 2006
  • 17.
    For more informationcontact 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.
    References  “Napster’s LastStand?” 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.