Illegally copying and distributing copyrighted material is against the law. This law is widely known, but rarely enforced. However, in recent months an Internet program called Napster has come under fire for aiding in the illegal distribution of music. The Recording Industry Association of America (RIAA), representing 18 record labels, has sued this California-based company for copyright violations. The controversy surrounding Napster is that the program itself does not illegally distribute copyrighted music. The people who use the program are the ones responsible for this illegal distribution. Another problem facing Napster is that universities around the country are beginning to block the program because it takes up too much bandwidth. Despite these problems Napster continues to go strong, adding new users every day. What will be the future of this hot new company?

Napster is the nickname of its creator, 19-year-old Shawn Fanning. Fanning wrote the program and obtained a large cash donation from a family friend. This donation allowed him to quit college and move from Harwich, Massachusetts, to San Mateo, California, to start a company with two of his friends. That w

warranties regarding MP3 files possessed by Napster users.

Kover, Amy. "Who's afraid of this kid?." Fortune. 20 March 2000. 129-130. Electronic. Proquest.

distributed without copyright owner authorization. Neither

Unfortunately for Napster, recording companies are not as enthusiastic about the program as college students are. Leading record company executives are actually outraged at the program. Bad Boy CEO and hip-hop icon Sean "Puffy" Combs claims that Napster abuses his artists (Cohen 41). This outrage caused the RIAA to sue in December, charging that Napster "has created and is operating a haven for music piracy on an unprecedented scale" (Kover 129). RIAA is trying to prove that Napster is used almost exclusively for illegal activity. The objective of its lawsuit is not only to shut Napster down, but to claim more than $100 million in damages. RIAA insists they will not back down from this lawsuit. Cary Sherman, RIAA senior executive vice president, says, "We contacted the company a number of times, including in writing. But the same recordings we advised Napster were infringing then are still available" (Holland 9). After a passive beginning, the RIAA is taking action. !

PLEASE NOTE: Napster, Inc. makes no representations or

Holland, Bill. "RIAA sues MP3 search site." Billboard. 18 December 1999. 9. Electronic. Proquest.

Perhaps the biggest obstacle Napster has yet to overcome is the same problem that faces all new companies. Napster has not made any money to date. They pay their employees and legal bills with generous donations from outside parties. Obviously, they will need to find a source of revenue if they are to survive as a company. They have begun to toy with the idea of advertising or e-commerce, but nothing has been decided yet. Another obstacle they must face is that there are an abundance of knockoffs popping up on the Internet. So far, Napster is not worried. Marketing vice president Elizabeth Brooks says, "We are a freeware company, so we get the whole free music vibe. We are so far ahead of any of the imitations that it doesn't really matter" (Kover 130). Nevertheless, Napster must overcome big obstacles in order to become a profitable organization.

Hillary Rosen, president of the RIAA, says, "This is not a passive role" (Holland 9).

o be avail

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Approximate Word count = 1573
Approximate Pages = 6 (250 words per page double spaced)