NAPSTER WILL TURN COP
TO AVOID SHUTDOWN

Napster could indeed be shut down, but the trigger will not be pulled today—though the swapco says it will implement a new file-policing regimen.

Representatives of the mega-popular online music-sharing service and recording industry organization the RIAA appeared in San Francisco before the judge in their copyright-infringement case today to determine the scope of an injunction against the service.

Judge Marilyn Hall Patel has not yet said when she would hand down her ruling. An Appeals Court last month called Patel's original injunction against the service "overbroad," ordering her to reword it.

The appellate ruling confirmed the contention that Napster was guilty of contributory infringement but that the burden of proof for individual violations rested with rights-holders.

For its part, Napster said today that it would remove pirated material from the service that had been documented by rights-holders, and that it was moving swiftly to develop technology to automate the process.

The netco's chief counsel, David Boies, said that he expected the implementation of software for this purpose to take place "sometime this week," but also stated that Napster would continue to press its case in court.

"We are inserting a step between the uplink and the viewing of the index that will block out specific file names. The problem is that this will adversely affect the performance of the system," asserted Boies.

"I think Napster will still be the best music service out there," he declared.

CEO Hank Barry, meanwhile, also pledged allegiance to the court's order. When asked by a reporter if the compliant Napster would be a shell of its former self, he owned, "It's gonna be different."

Queried if there had been any progress in negotiations with major labels about licensing material for a paid, ostensibly secure version of the service, Barry averred, "Generally, no," before adding, with typical politesse, "You've got reasonable people on both sides" and once more expressing his hope for a deal.

Barry later issued an official statement. "This is a case that should be settled," it begins.
"We are fighting to preserve the Napster community and the Napster file sharing experience.

"At today's hearing, Sony, AOL TimeWarner, Vivendi Universal and EMI pushed well beyond the dictates of the 9th Circuit decision in their quest to shut Napster down, insisting on an injunction that it would be impossible to comply with other than by shutting down the service.

"We proposed a workable injunction that follows the 9th Circuit ruling and keeps the Napster community together while we are working to settle this case and transition to our new membership-based service. While we await the judge's modified injunction and while we continue to pursue our legal case, we will begin later this weekend to block the transfer of file names we have previously received from copyright holders, consistent with the 9th Circuit's ruling."

The RIAA's team, headed by attorney Russell Frackman, pressed Patel to speed the process along.

RIAA head Hillary Rosen, meanwhile, issued a statement. "We are grateful for the Court's diligent efforts to fashion an appropriate injunction and look forward to an order which makes clear that the infringing part of Napster's business—taking music which isn't theirs and giving it away—must come to an end," it reads.

"Given the overwhelming nature of this Court's and the Ninth Circuit's earlier conclusions that Napster violates copyright laws," Rosen's statement concludes, "we're confident that ultimately this will pave the way for a legitimate online music market to take hold and flourish."

Press predictions of the service's imminent shutdown have driven traffic to both the Napster site and its client software (the latter is used for the actual file exchanges).

With backing from Bertelsmann, Napster still reportedly plans a summer rollout of its paid service. Major label groups UMG, Sony and WMG and their various parent companies have all announced subscription music services of their own recently.