Napster Agrees to Charge Fees for Downloading Music over Internet (Great Events: 1900-2001)
Article abstract: The digital music file-sharing pioneer Napster teamed with Bertelsmann AG to find a way to compensate musicians and recording companies for music files shared using its revolutionary and previously free file-sharing network.
On October 31, 2000, the German media giant Bertelsmann AG agreed to team up with Napster, the young and popular Internet company whose software allowed users to trade music with each other online. Besieged throughout the year by lawsuits from the music industry, Napster continued to allow users to obtain music files from each other without payment. However, in its agreement with Bertelsmann, one of the companies suing Napster, it agreed to join with the German company and work out a way to charge users and pass on the money raised so that artists and recording companies could be paid for their work. In exchange for help in setting up the technology to allow this to occur and a loan to finance the work, Bertelsmann agreed to drop its part of the lawsuit once the new system was in place and to purchase part of the Napster company.
Napster permits users to connect with one another to download music files. What Napster provides is the directory in which specific music can be found and the software to log on to the other person’s computer and download the files. The company, based in San Mateo, California, had been very popular, especially with college...
(The entire section is 1169 words.)
Want to Read More?
Subscribe now to read the rest of this article. Plus get complete access to 30,000+ study guides!