Clear Victory for Recording Industry in Napster Case

Ninth Circuit Rules in RIAA’s Favor on Every Legal Issue Presented

Washington, DC - February 13, 2001 - Artist, labels, songwriters and publishers won a clear victory today in the Ninth Circuit Court of Appeals as a three-judge panel ruled that Napster’s conduct was in violation of copyright law.

The Court of Appeals held that the District Court “correctly recognized that a preliminary injunction against Napster’s participation in copyright infringement is not only warranted, but required.”

“Today’s decision represents a clear victory for the creative content community and the legitimate online marketplace,” said Hilary Rosen, Recording Industry Association of America (RIAA) President and CEO. “We are gratified that the Ninth Circuit agreed with Judge Patel that Napster must take steps immediately to prevent further copyright infringements.”

The Ninth Circuit upheld the recording industry’s position on every issue of law, including the District Court findings on contributory and vicarious infringement.

The Ninth Circuit’s opinion stated: “Napster by its conduct knowingly encourages and assists the infringement of plaintiffs’ copyrights.”

“We intend to work expeditiously in the District Court to comply with the Court of Appeals’ clear instruction that the infringing activity be stopped,” added Rosen.

The Court of Appeals opinion also affirmed the District Court’s conclusion that, “Napster users are not fair users….” In so ruling, the Court of Appeals rejected all of Napster’s defenses, including fair use, sampling and space shifting.

The Ninth Circuit Court of Appeals concluded that the scope of the District Court’s preliminary injunction was over broad and it remanded the case so that the District Court could modify the injunction in a manner consistent with the Court of Appeals’ decision. The Court of Appeals directed the District Court to immediately enter a modified preliminary injunction.

The RIAA is a trade association whose members create, manufacture and/or distribute approximately 85 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.