Napster Loses First Round in Court

Washington, DC - May 08, 2000 - Napster, the company that provides users with a hub of central computer servers to which they connect and share millions of pirated sound recordings, lost its first attempt to evade liability for copyright infringement today. Chief Judge Marilyn Hall Patel rejected Napster’s claim that it is a “mere conduit.”

The decision announced late Friday, followed a March 27 hearing in the U.S. District Court for the Northern District of California.

“This hearing was Napster’s attempt to escape responsibility for aiding and abetting wide scale piracy and -- not surprisingly -- they lost,” said Hilary Rosen, President and CEO of the Recording Industry Association of America (RIAA).

“Clearly the case will now move forward. Napster just lost its last delaying tactic,” Rosen declared.

Many artists and their managers are speaking out against Napster for stealing their creative works. “The court’s decision today is the first step in responding to those artists,” added Rosen. To review a complete list of artists quotes visit www.riaa.com.

The lawsuit, which was filed on December 7, 1999 by the RIAA on behalf of its member companies, charges Napster with contributory and vicarious copyright infringement.

The RIAA is a trade association whose members create, manufacture and/or distribute approximately 90 percent of all legitimate sound recordings produced and sold in the United States.

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The Recording Industry Association of America (RIAA) is the trade organization that supports and promotes the creative and financial vitality of the major music companies. Its members are the music labels that comprise the most vibrant record industry in the world. RIAA® members create, manufacture and/or distribute approximately 85% of all legitimate recorded music produced and sold in the United States.

In support of this mission, the RIAA works to protect the intellectual property and First Amendment rights of artists and music labels; conduct consumer, industry and technical research; and monitor and review state and federal laws, regulations and policies. The RIAA® also certifies Gold®, Platinum®, Multi- Platinum™ and Diamond sales awards as well as Los Premios De Oro y Platino™, an award celebrating Latin music sales.