Editing Napster (section)

==History==
Although there were already networks that facilitated the distribution of files across the Internet, such as [[IRC]], [[Hotline Communications|Hotline]], and [[Usenet]], Napster specialized in MP3 files of music and had a user-friendly interface. At its peak, the Napster service had about 80 million registered users.<ref>{{cite web | url=https://www.pcworld.idg.com.au/article/22380/requiem_napster/ | title=Requiem for Napster | publisher=Pcworld.com | date=2002-05-18 | access-date=2013-06-13 | last=Gowan | first=Michael | archive-date=2014-04-26 | archive-url=https://web.archive.org/web/20140426235542/http://www.pcworld.idg.com.au/article/22380/requiem_napster/ | url-status=live }}</ref> Napster made it relatively easy for music enthusiasts to download copies of songs that were otherwise difficult to obtain, such as older songs, unreleased recordings, studio recordings, and songs from concert bootleg recordings. Napster paved the way for [[streaming media]] services and transformed music into a [[Public good (economics)|public good]] for a brief time.

High-speed networks in college dormitories became overloaded, with as much as 61% of external network traffic consisting of MP3 file transfers.<ref>{{cite news | url=http://www.isp-planet.com/politics/napster.html | title=The Napster Nightmare | publisher=ISP-Planet | date=March 13, 2000 | last=Fusco | first=Patricia | archive-url=https://web.archive.org/web/20111019152028/http://www.isp-planet.com/politics/napster.html | archive-date=2011-10-19}}</ref> Many colleges blocked its use for this reason,<ref>{{cite news | url=http://news.bbc.co.uk/1/hi/business/942090.stm | title=Napster expelled by universities | work=BBC News | date=September 26, 2000 | last=Anderson | first=Kevin | archive-url=https://web.archive.org/web/20071021085514/http://news.bbc.co.uk/1/hi/business/942090.stm | archive-date=2007-10-21}}</ref> even before concerns about liability for facilitating copyright violations on campus.

===Macintosh version===
The service and software program began as [[Windows]]-only. However, in 2000, Black Hole Media wrote a Macintosh client called Macster. Macster was later bought by Napster and designated the official Mac Napster client ("Napster for the Mac"), at which point the Macster name was discontinued.<ref>{{cite web|url=https://www.macobserver.com/article/2000/10/25.2.shtml|title=Official Napster Client For Mac OS, OS X -- The Mac Observer|work=macobserver.com|access-date=2020-04-15|archive-date=2020-08-09|archive-url=https://web.archive.org/web/20200809055433/https://www.macobserver.com/article/2000/10/25.2.shtml|url-status=live}}</ref> Even before the acquisition of Macster, the Macintosh community had a variety of independently developed Napster clients. The most notable was the [[Open source software|open source]] client called MacStar, released by Squirrel Software in early 2000, and Rapster, released by Overcaster Family in Brazil.<ref>{{cite web | url=http://www.applelinks.com/mooresviews/players.shtml | title=Eight MP3 Players For The Macintosh | publisher=Applelinks | access-date=April 26, 2014 | author=Moore, Charles W. | url-status=dead | archive-url=https://web.archive.org/web/20131112184840/http://www.applelinks.com/mooresviews/players.shtml | archive-date=November 12, 2013 | df=mdy-all }}</ref> The release of MacStar's source code paved the way for third-party Napster clients across all computing platforms, giving users advertisement-free music distribution options.

===Legal challenges===
A demo of the heavy metal band [[Metallica]]'s song "[[I Disappear]]" had been circulating across the network before the song's official release. This led to it being played on several radio stations across the United States, which alerted Metallica to the presence of the leaked song, along with the fact that their entire back catalogue of studio material was also available on Napster. On April 13, 2000, they filed a [[Metallica v. Napster, Inc.|lawsuit against Napster]]. A month later, rapper and producer [[Dr. Dre]], who shared a litigator and legal firm with Metallica, filed a similar lawsuit after Napster refused his written request to remove his works from its service. Separately, Metallica and Dr. Dre later delivered to Napster thousands of usernames of people who they believed were pirating their songs. In March 2001, Napster settled both suits, after being shut down by the [[Ninth Circuit Court of Appeals]] in a separate lawsuit from several major record labels (see below).<ref>{{cite journal |doi=10.1086/522098 |title=Conflict and Compromise: Drama in Marketplace Evolution |year=2008 |last1=Giesler |first1=Markus |journal=Journal of Consumer Research |volume=34 |issue=6 |pages=739–753 |url=http://visionarymarketing.files.wordpress.com/2007/11/giesler2007jcr.pdf |citeseerx=10.1.1.564.7146 |s2cid=145796529 |access-date=2017-10-25 |archive-date=2008-07-24 |archive-url=https://web.archive.org/web/20080724001917/http://visionarymarketing.files.wordpress.com/2007/11/giesler2007jcr.pdf |url-status=dead }}</ref> In 2000, [[Madonna]]'s [[Single (music)|single]] "[[Music (Madonna song)|Music]]" was leaked out onto the web and Napster prior to its commercial release, causing widespread media coverage.<ref>{{cite news | url=http://news.com/2100-1023-241341.html?legacy=cnet | title=Unreleased Madonna Single Slips On To Net | publisher=CNET News.com | date=June 1, 2000 | last=Borland | first=John | archive-url=https://archive.today/20120628232111/http://news.cnet.com/2100-1023-241341.html | archive-date=June 28, 2012 | url-status=dead | df=mdy-all }}</ref> Verified Napster use peaked with 26.4 million users worldwide in February 2001.<ref>{{cite press release | url=http://www.comscore.com/press/release.asp?id=249 | title=Global Napster Usage Plummets, But new File-Sharing Alternatives Gaining Ground, Reports Jupiter Media Metrix | publisher=comScore | date=2001-07-20 | access-date=April 26, 2014 | archive-url=https://web.archive.org/web/20080413104420/http://www.comscore.com/press/release.asp?id=249 | archive-date=2008-04-13}}</ref> In that same month, with a court-ordered interim shut-down imminent, Napster went public with a settlement proposal which would have paid the record labels $1 billion over the next five years, with the money coming through a subscription service.<ref>{{cite web|url=http://www.jamshowbiz.com/JamNapster/feb21_napster-can.html#coverage|title=Napster to charge up to $10 a month|date=February 21, 2001|website=jamshowbiz.com|archive-url=https://web.archive.org/web/20010320011102/http://www.jamshowbiz.com/JamNapster/feb21_napster-can.html#coverage |archive-date=20 March 2001 }}</ref>

In 2000, the American musical recording company [[A&M Records]] along with several other recording companies, through the [[Recording Industry Association of America]] (RIAA), sued Napster (''[[A&M Records, Inc. v. Napster, Inc.]]'') on grounds of contributory and vicarious copyright infringement under the US [[Digital Millennium Copyright Act]] (DMCA).<ref>17 U.S.C. A&M Records. Inc. v. Napster. Inc. 114 F. Supp. 2d 896 (N. D. Cal. 2000).</ref> Napster was faced with the following allegations from the music industry:

# That its users were directly violating the plaintiffs' copyrights.
# That Napster was responsible for contributory infringement of the plaintiff's copyrights.
# That Napster was responsible for the vicarious infringement of the plaintiff's copyrights.

Napster lost the case in the District Court but then appealed to the U.S. Court of Appeals for the Ninth Circuit. Although it was clear that Napster could have commercially significant non-infringing uses, the Ninth Circuit upheld the District Court's decision. Immediately after, the District Court commanded Napster to keep track of the activities of its network and to restrict access to infringing material when informed of that material's location. Napster wasn't able to comply and thus had to close down its service in July 2001. In 2002, Napster announced that it had filed for bankruptcy and sold its assets to a third party.<ref>.A&M Records, Inc. v. Napster, Inc., 239 F.3d 1004 (9th Cir. 2001). For a summary and analysis, see Guy Douglas, [http://www.murdoch.edu.au/elaw/issues/v11n1/douglas111.html Copyright and Peer-To-Peer Music File Sharing: The Napster Case and the Argument Against Legislative Reform] {{Webarchive|url=https://web.archive.org/web/20100709232632/http://www.murdoch.edu.au/elaw/issues/v11n1/douglas111.html |date=2010-07-09 }}</ref> In a 2018 ''[[Rolling Stone]]'' article, Kirk Hammett of Metallica upheld the band's opinion that suing Napster was the "right" thing to do.<ref>{{cite magazine |title=Metallica's Kirk Hammett: 'We're Still Right' About Suing Napster |url=https://www.rollingstone.com/music/music-news/metallicas-kirk-hammett-were-still-right-about-suing-napster-630185/ |magazine=Rolling Stone |access-date=16 October 2019 |date=2018-05-14 |archive-date=2019-10-16 |archive-url=https://web.archive.org/web/20191016190119/https://www.rollingstone.com/music/music-news/metallicas-kirk-hammett-were-still-right-about-suing-napster-630185/ |url-status=live }}</ref>

===Promotional power===
[[Image:Napster Unique Users.svg|thumb|right|300px|Napster peaked in February 2001]]

Along with the accusations that Napster was hurting the sales of the record industry, some felt just the opposite, that file trading on Napster stimulated, rather than hurt, sales. Some evidence may have come in July 2000 when tracks from [[England|English]] rock band [[Radiohead]]'s album ''[[Kid A]]'' found their way to Napster three weeks before the album's release. Unlike Madonna, Dr. Dre, or Metallica, Radiohead had never hit the top 20 in the US. Furthermore, ''Kid A'' was an album without any [[Single (music)|singles]] released, and received relatively little radio [[airplay]]. By the time of the album's release, the album was estimated to have been downloaded for free by millions of people worldwide, and in October 2000 ''Kid A'' captured the number one spot on the [[Billboard 200|''Billboard'' 200]] sales chart in its debut week. According to [[Richard Menta]] of ''[[MP3 Newswire]]'',<ref>{{cite news | last=Menta | first=Richard | title=Did Napster Take Radiohead's New Album to Number 1? | date=October 28, 2000 | publisher=MP3 Newswire | url=http://www.mp3newswire.net/stories/2000/radiohead.html | access-date=January 21, 2005 | archive-date=January 4, 2018 | archive-url=https://web.archive.org/web/20180104132519/http://www.mp3newswire.net/stories/2000/radiohead.html | url-status=dead }}</ref> the effect of Napster in this instance was isolated from other elements that could be credited for driving sales, and the album's unexpected success suggested that Napster was a good promotional tool for music.

Since 2000, many musical artists, particularly those not signed to major labels and without access to traditional mass media outlets such as radio and television, have said that Napster and successive Internet file-sharing networks have helped get their music heard, spread word of mouth, and may have improved their sales in the long term.{{Citation needed|date=September 2007}} One such musician to publicly defend Napster as a promotional tool for independent artists was DJ Xealot, who became directly involved in the 2000 A&M Records Lawsuit.<ref name="Declaration of D.J. Xealot in Supp. of. Napster">{{cite web |title=Case Nos. C 99-5183 and C 00-0074 MHP (ADR) |url=http://news.findlaw.com/hdocs/docs/napster/napster/dec_xeal.pdf |work=[[FindLaw.com]] |access-date=February 12, 2009 |archive-date=February 14, 2006 |archive-url=https://web.archive.org/web/20060214000323/http://news.findlaw.com/hdocs/docs/napster/napster/dec_xeal.pdf |url-status=live }}</ref> [[Chuck D]] from [[Public Enemy (band)|Public Enemy]] also came out and publicly supported Napster.<ref>{{cite news | title=Rapper Chuck D throws weight behind Napster | date=May 1, 2000 | publisher=Cnet News | url=http://news.cnet.com/2100-1023-239917.html | access-date=February 17, 2009 | archive-date=July 11, 2012 | archive-url=https://web.archive.org/web/20120711140750/http://news.cnet.com/2100-1023-239917.html | url-status=live }}</ref>

===Lawsuit===
{{Main|A&M Records, Inc. v. Napster, Inc.}}

Napster's facilitation of the transfer of copyrighted material was objected to by the [[Recording Industry Association of America]] (RIAA), which filed a [[lawsuit]] against the service on December 6, 1999.<ref>*[https://law.justia.com/cases/federal/district-courts/FSupp2/114/896/2343353/ ''A&M Records, Inc. v. Napster, Inc.'', 114 F. Supp. 2d 896 (N.D. Cal. 2000)] {{Webarchive|url=https://web.archive.org/web/20191204173523/https://law.justia.com/cases/federal/district-courts/FSupp2/114/896/2343353/ |date=2019-12-04 }}, aff'd in part, rev'd in part, 239 F.3d 1004 ([[9th Cir.]] 2001)
*{{cite news | last=Menta | first=Richard | title=RIAA Sues Music Startup Napster for $20 Billion | date=December 9, 1999 | publisher=MP3 Newswire | url=http://www.mp3newswire.net/stories/napster.html | access-date=April 29, 2005 | archive-date=December 12, 2017 | archive-url=https://web.archive.org/web/20171212042457/http://www.mp3newswire.net/stories/napster.html | url-status=usurped}}</ref> The legal action, while intended to shut down the service, brought it [[Streisand effect|a great deal of publicity]] and an influx of millions of new users, many of whom were college students. After a failed appeal to the [[United States Court of Appeals for the Ninth Circuit|Ninth Circuit Court]], an injunction was issued on March 5, 2001, ordering Napster to prevent the trading of copyrighted music on its network.<ref>2001 US Dist. LEXIS 2186 (N.D. Cal. Mar. 5, 2001), aff’d, 284 F. 3d 1091 (9th Cir. 2002).</ref>

[[Lawrence Lessig]] claimed, however, that this decision made little sense from the perspective of copyright protection: "When Napster told the district court that it had developed a technology to block the transfer of 99.4 percent of identified infringing material, the district court told counsel for Napster 99.4 percent was not good enough. Napster had to push the infringements 'down to zero.' If 99.4 percent is not good enough," Lessig concluded, "then this is a war on file-sharing technologies, not a war on copyright infringement."<ref>{{cite book |last= Lessig |first= Lawrence |author-link= Lawrence Lessig
|title= Free Culture: The Nature and Future of Creativity
|year= 2004 |publisher= Penguin
|isbn= 978-0-14-303465-0 |pages= 73–74 }}</ref>

===Shutdown===
On July 11, 2001, Napster shut down its entire network to comply with the injunction. One week later, the 9th U.S. Circuit Court of Appeals temporarily overturned the order from the week before and allowed Napster to resume operations, due to Napster saying it could block all but a tiny fraction of unauthorized song-swapping.<ref>{{cite web|url=http://www.jamshowbiz.com/JamNapster/jul18_napster-ap.html|title=Appeals Court says Napster can go back online|date=July 18, 2001|publisher=[[Associated Press]]|archive-url=https://web.archive.org/web/20030501110218/http://www.jamshowbiz.com/JamNapster/jul18_napster-ap.html |archive-date=1 May 2003 }}</ref> On September 24, 2001, the case was partially settled. Napster agreed to pay music creators and copyright owners a $26 million settlement for past, unauthorized uses of music, and as an advance against future licensing royalties of $10 million. To pay those fees, Napster attempted to convert its free service into a subscription system, and thus traffic to Napster was reduced. A prototype solution was tested in 2002: the Napster 3.0 Alpha, using the ".nap" secure file format from PlayMedia Systems<ref>{{cite web|url=https://www.theregister.co.uk/2001/07/23/napster_to_ditch_mp3/|title=Napster to ditch MP3 for proprietary format|work=theregister.co.uk|access-date=2017-08-10|archive-date=2017-08-10|archive-url=https://web.archive.org/web/20170810142519/https://www.theregister.co.uk/2001/07/23/napster_to_ditch_mp3/|url-status=live}}</ref> and audio fingerprinting technology licensed from Relatable. Napster 3.0 was, according to many former Napster employees, ready to deploy, but it had significant trouble obtaining licenses to distribute major-label music. On May 17, 2002, Napster announced that its assets would be acquired by German media firm [[Bertelsmann]] for $85 million to transform Napster into an online music subscription service. The two companies had been collaborating since the middle of 2000<ref>{{Cite web
| url = https://www.cnet.com/news/bertelsmann-to-buy-napster-for-a-song/
| title = Bertelsmann to buy Napster for a song
| website = CNET
| access-date = 2016-02-29
| archive-date = 2016-03-10
| archive-url = https://web.archive.org/web/20160310055815/http://www.cnet.com/news/bertelsmann-to-buy-napster-for-a-song/
| url-status = live
}}</ref> when Bertelsmann became the first major label to drop its copyright lawsuit against Napster.<ref>{{Cite news
| url = https://www.theguardian.com/technology/2000/nov/01/internetnews.business
| title = Napster wins a new friend
| last1 = Teather
| first1 = David
| date = 2000-11-01
| newspaper = The Guardian
| language = en-GB
| issn = 0261-3077
| access-date = 2016-02-29
| archive-date = 2016-03-05
| archive-url = https://web.archive.org/web/20160305135358/http://www.theguardian.com/technology/2000/nov/01/internetnews.business
| url-status = live
}}</ref> Pursuant to the terms of the acquisition agreement, on June 3 Napster filed for [[Chapter 11, Title 11, United States Code|Chapter 11]] protection under [[United States]] [[bankruptcy]] laws. On September 3, 2002, an American bankruptcy judge blocked the sale to Bertelsmann and forced Napster to liquidate its assets.<ref name=lives />

===Reuse of name===
{{main|Napster (streaming music service)}}
Napster's brand and logos were acquired at a bankruptcy auction by [[Roxio]] which used them to re-brand the [[Pressplay]] music service as [[Napster (pay service)|Napster 2.0]]. In September 2008, Napster was purchased by US electronics retailer [[Best Buy]] for US$121 million.<ref name="urlThe Next Chapter: Best Buy To Acquire Napster For $121 Million | paidContent.org">{{cite web|url=https://www.cnet.com/news/best-buy-nabs-napster-for-121-million/|title=Best Buy nabs Napster for $121 million|last=Skillings|date=September 15, 2008|publisher=CNET|work=cnet.com|access-date=January 4, 2016|archive-date=April 20, 2016|archive-url=https://web.archive.org/web/20160420040827/http://www.cnet.com/news/best-buy-nabs-napster-for-121-million/|url-status=live}}</ref> On December 1, 2011, pursuant to a deal with [[Best Buy]], Napster merged with [[Rhapsody (online music service)|Rhapsody]], with Best Buy receiving a minority stake in Rhapsody.<ref>{{cite news | url=https://money.cnn.com/2011/11/30/technology/napster_rhapsody/?source=cnn_bin | work=CNN | title=Today is Napster's last day of existence | date=November 30, 2011 | access-date=August 3, 2020 | archive-date=September 18, 2020 | archive-url=https://web.archive.org/web/20200918104858/https://money.cnn.com/2011/11/30/technology/napster_rhapsody/?source=cnn_bin | url-status=live }}</ref> On July 14, 2016, Rhapsody phased out the Rhapsody brand in favor of Napster and has since branded its service internationally as Napster<ref>{{cite news | url=http://blog.napster.com/2016/07/14/wearenapster | work=Napster Team | title=We Are Napster | date=July 14, 2016 | access-date=July 15, 2016 | archive-date=July 17, 2016 | archive-url=https://web.archive.org/web/20160717135243/http://blog.napster.com/2016/07/14/wearenapster | url-status=live }}</ref> and expanded toward other markets by providing music on-demand as a service to other brands<ref>{{Cite web|url=https://business.napster.com/services|title=Services {{!}} Napster|website=Napster|access-date=2018-03-27|archive-date=2018-03-27|archive-url=https://web.archive.org/web/20180327144959/https://business.napster.com/services|url-status=live}}</ref> like the [[iHeartRadio]] app and their All Access music subscription service that provides subscribers with an on-demand music experience as well as premium radio.<ref>{{Cite web|url=https://www.iheartmedia.com/press/iheartmedia-officially-launches-its-interactive-demand-radio-services-iheartradio-plus-and|title=Press Releases|website=www.iheartmedia.com|language=en|access-date=2018-03-27|archive-date=2018-03-27|archive-url=https://web.archive.org/web/20180327212242/https://www.iheartmedia.com/press/iheartmedia-officially-launches-its-interactive-demand-radio-services-iheartradio-plus-and|url-status=live}}</ref>

On August 25, 2020, Napster was sold to virtual reality concerts company MelodyVR.<ref>{{Cite magazine|date=2020-08-25|title=Napster Sold to Virtual Reality Concert App MelodyVR for $70 Million|url=http://www.billboard.com/articles/business/9439418/napster-melodyvr-sale-price-details|access-date=2020-08-26|magazine=Billboard|archive-date=2020-08-26|archive-url=https://web.archive.org/web/20200826023301/https://www.billboard.com/articles/business/9439418/napster-melodyvr-sale-price-details|url-status=live}}</ref>

On May 10, 2022, Napster was sold to Hivemind and [[Algorand]]. The investor consortium also includes ATC Management, BH Digital, G20 Ventures, [[SkyBridge Capital|SkyBridge]], RSE Ventures, [[Arlington Capital Partners|Arrington Capital]], Borderless Capital, and others.<ref>{{Cite magazine|date=2022-05-10|title=Hivemind and Algorand today announced the acquisition of Napster, to once again revolutionize the music industry by bringing blockchain and Web3 to artists and fans.|url=https://www.linkedin.com/posts/napster_hivemind-and-algorand-today-announced-the-activity-6929792306673815553-bbeZ|access-date=2022-05-10|magazine=Linkedin|archive-date=2022-05-28|archive-url=https://web.archive.org/web/20220528040647/https://www.linkedin.com/posts/napster_hivemind-and-algorand-today-announced-the-activity-6929792306673815553-bbeZ|url-status=live}}</ref><ref>{{Cite magazine|date=2022-05-10|title=Breaking: @HivemindCap and @Algorand today announced the acquisition of @Napster , to once again revolutionize the music industry by bringing blockchain and Web3 to artists and fans. Music industry veteran Emmy Lovell has been named interim CEO.|url=https://twitter.com/HivemindCap/status/1524027670941556739|access-date=2022-05-10|magazine=Twitter|archive-date=2022-05-10|archive-url=https://web.archive.org/web/20220510140950/https://twitter.com/HivemindCap/status/1524027670941556739|url-status=live}}</ref>

On March 25, 2025, Napster was sold for $207 million to Infinite Reality, a technology and entertainment company specializing on digital media and artificial intelligence.<ref name="InfiniteReality">{{cite web | url=https://www.theinfinitereality.com/news/infinite-reality-acquires-iconic-music-service-napster | website=Infinite Reality | title=Infinite Reality Acquires Iconic Music Service Napster | date=March 25, 2025}}</ref>