RIAA put their usual spin on events, but as they are currently suing Napster this is essential reading.

Read Full Article

"Today's announcement of a strategic alliance between Napster and Bertelsmann AG makes clear that Napster has come to the same conclusion we have been urging from the start: that it is better to work with the creative community than against it. This is a welcome development.

"We welcome anyone's decision to become a legitimate player in the online music industry, building a business based on licensed uses of copyrighted works.

"Today's announcement does not bring an end to the court case. There are multiple plaintiffs in addition to BMG; and BMG itself has said that it won't withdraw its complaint against Napster until they actually implement a legitimate business model. And frankly, it is important for everyone - Napster included - that the ground rules of the Internet music business be established once and for all.

"The courts need to make clear that, contrary to what Napster has been claiming, companies like Napster do need to get permission before they launch businesses built on other people's creative property.

"This case has always been about sending a message to the technology and venture capital communities that consumers, creators and innovators will best flourish when copyright interests are respected. It has never been about peer-to-peer technology itself, which can be implemented legitimately, as today's announcement confirms. I am glad that Napster has gotten that message and hope that this announcement sends the right signal to others who are operating or intending to operate sites or businesses that facilitate piracy.

"The U.S. Recording Industry is committed to bringing music online to its fans and hopefully today's development is just one more positive step in that direction," Rosen concluded.

 

Related Stories: