Napster, launched early in 1999, allows Internet users to share and download MP3 files directly from any computer connected to the Napster network. The software is used by downloading a client program from the Napster site and then connecting to the network through this software, which allows sharing of MP3 files between all users connected to the network. While Napster does not condone copyright infringement, there is no opportunity in the software to stop this from happening, or for a percentage to be paid to artists whose songs are being duplicated for free.

Unlike similar file-sharing applications (such as Gnutella, or Freenet), Napster limits users to uploading/downloading of MP3 files only. These files are compressed wave (.wav) files. The advantage of MP3 files is that they are appr

Napster claims that ‘Audio Home Recording Act’ permits copying of material for personal use, allows its uses to swap MP3s. The trail on Napster’s ‘swapping’ technology has turned into a debate over the 1st amendment. Napster claims that their product should be covered by freedom of speech, the industry argues back saying that the freedom of speech doesn’t cover copyrighted material.

"Napster is… enabling and encouraging the illegal copying and distribution of copyrighted music".

On February 20, 2001 Napster made proposals with major record labels to make this dream a reality. Napster's proposal was to pay $1 billion dollars to the major labels, songwriters and independent labels and artists over 5 years in exchange for copyrights and legal use of their songs for file transfer. By doing so, Napster has stated that in the early summer, sometime around July, it will start to charge a monthly fee for usage of their product. Although no set fee has been set, it would be safe to say that the price range would be between $5-10 dollars. This is just one example of Napster’s attempt to change their current method to meet the satisfaction of both the consumer and the industry. There are many alternatives towards the reconfiguration of a product like Napster, to shut it completely down would be a tremendous tragedy.

“By my calculations, the record companies can make as much or more money by abandoning their old business model and going with Napster's. They should look at the numbers, do the math, and then form a massive joint venture with Napster…If 50 million users each paid $10 a month, or $120 a year, for unlimited access to everything, the service would gross $6 billion annually. Most of this money would be redistributed to the artists and labels, as determined by various contracts… The $6 billion a year would be right off the top and amount to almost pure profits, because the cost of distribution is nil. Possibly, the record companies and artists actually could make more money from this source than from conventional CDs.”

Back when radio got popular, artists and record companies complained loudly that they would never make another dime, because everyone would listen to radio, and never buy a

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