An analysis of napster inc

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An analysis of napster inc

The complaint alleges that Napster, Inc. The injunction was slightly modified by written opinion on August 10, Federal Rule of Civil Procedure 65 c requires successful plaintiffs to post a bond for damages incurred by the enjoined party in the event that the injunction was wrongfully issued.

We have jurisdiction pursuant to 28 U. We affirm in part, reverse in part and remand. I [3] We have examined the papers submitted in support of and in response to the injunction application and it appears that Napster has designed and operates a system which permits the transmission and retention of sound recordings employing digital technology.

The MP3's compressed format allows for rapid transmission of digital audio files from one computer to another by electronic mail or any other file transfer protocol. Once the software is installed, the user can access the Napster system. The user then saves his MP3 files in the library directory, using self-designated file names.

He next must log into the Napster system using his user name and password.

An analysis of napster inc

His MusicShare software then searches his user library and verifies that the available files are properly formatted. The collective directory is fluid; it tracks users who are connected in real time, displaying only file names that are immediately accessible.

To search the files available from Napster users currently connected to the network servers, the individual user accesses a form in the MusicShare software stored in his computer and enters either the name of a song or an artist as the object of the search.

Those file names may contain typographical errors or otherwise inaccurate descriptions of the content of the files since they are designated by other users. See generally Brookfield Communications, Inc. The file may also be transferred back onto an audio CD if the user has access to equipment designed for that purpose.

In both cases, the quality of the original sound recording is slightly diminished by transfer to the MP3 format. The content is the subject of our copyright infringement analysis.

An analysis of napster inc

II [14] We review a grant or denial of a preliminary injunction for abuse of discretion. Application of erroneous legal principles represents an abuse of discretion by the district court. If the district court is claimed to have relied on an erroneous legal premise in reaching its decision to grant or deny a preliminary injunction, we will review the underlying issue of law de novo.

Prudential Real Estate Affiliates, Inc. III [17] Plaintiffs claim Napster users are engaged in the wholesale reproduction and distribution of copyrighted works, all constituting direct infringement.

We only need briefly address the threshold requirements. Infringement [18] Plaintiffs must satisfy two requirements to present a prima facie case of direct infringement: Plaintiffs have sufficiently demonstrated ownership.

July 26, transcript of proceedings. Napster identifies three specific alleged fair uses: The district court concluded that Napster users are not fair users.

Purpose and Character of the Use [23] This factor focuses on whether the new work merely replaces the object of the original creation or instead adds a further purpose or different character.

This conclusion is supportable. Courts have been reluctant to find fair use when an original work is merely retransmitted in a different medium.

See Campbell, U. Rather, repeated and exploitative copying of copyrighted works, even if the copies are not offered for sale, may constitute a commercial use. See Worldwide Church of God v. Philadelphia Church of God, F.

In the record before us, commercial use is demonstrated by a showing that repeated and exploitative unauthorized copies of copyrighted works were made to save the expense of purchasing authorized copies.

See Worldwide Church, F. Plaintiffs made such a showing before the district court. We note, however, that under certain circumstances, a court will conclude that a use is fair even when the protected work is copied in its entirety.

Universal City Studios, Inc. The proof required to demonstrate present or future market harm varies with the purpose and character of the use: A challenge to a noncommercial use of a copyrighted work requires proof either that the particular use is harmful, or that if it should become widespread, it would adversely affect the potential market for the copyrighted work.

If the intended use is for commercial gain, that likelihood [of market harm] may be presumed. But if it is for a noncommercial purpose, the likelihood must be demonstrated.The Business Journals' sites feature local business and industry news from 43 different markets around the nation along with a full menu of .

Sean Fanning's Napster is widely regarded as the poster child for the dot-com-bubble's bust. In some ways that description is very apt. Characterizing the company as a VC-baby that never developed a business model and whose fame was based on giving away other's property would hardly be inaccurate.

The Resounding Impact of Napster, Inc. An Analysis of A & M Records, Inc. v. Napster, Inc. Isabella Kelly Claremont McKenna College This Open Access Senior Thesis is brought to you by [email protected]

It has been accepted for inclusion in this collection by an authorized. As a company, we believe broadening the application of the tools of financial analysis and reporting to every aspect of business operations—extending the reach of finance from compliance fulfillment reporting and incrementalist budgeting activity to critical analysis of business issues—is one of the great unleveraged business opportunities of our time.

The district court first conducted a general analysis of Napster system uses under § , and then applied its reasoning to the alleged fair uses identified by Napster.

The district court concluded that Napster users are not fair users. The topic of patents for software-related inventions is a very technical and complicated area. Furthermore, there have recently been many discussions and heated debates regarding the wisdom of using the patent system to protect software.

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