Napster: Another judgment day

February 11, 2001
Web posted at: 1141 GMT

NEW YORK (CNNfn) - Napster Monday faces another life or death moment in its turbulent life when a federal appeals court is slated to release a long-awaited decision on whether the Internet music-swapping site should be shut down.

"We have great confidence in our legal position," Napster said in a statement on its site over the weekend.

Nevertheless, in anticipation of a negative decision, thousands of music seekers were reportedly flooding the site over the weekend looking to download song files.

Using the file-swapping programs on the site, Napster allows music lovers to trade and share their favorite songs. In 1999 major record labels, which weren't receiving any revenue for the distribution of their music, sued the website for copyright infringement. Last July U.S. Judge Marilyn Hall Patel ordered the site to cease operations while the main arguments about copyright law progressed through the court system. The 9th Circuit Court of Appeals stayed that order, allowing the website to continue operations.

Late Friday the appeals court said it would issue its decision in the case Monday by 10 a.m. San Francisco time.

"We're confident that the Ninth Circuit understands the severity of our claim and will uphold the decision of the U.S. Federal Court. Monday's decision may finally clear the way for the legitimate online marketplace to thrive in an environment that encourages both creativity and a respect for copyright," said Hilary Rosen, president of the Recording Industry Association of America.

As the legal contests continue, Napster hasmade peace with several record labels, most notably Bertelsmann AG. Under their alliance, Napster and Bertelsmann will create a subscription based music-swapping service.

Napster is currently one of the most popular services on the Internet, with 57 million registered users. On any given day, an average 8.5 million are using the service, and an average 1.6 million use the service at the same time.

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