As technology advances, people search for quicker and easier ways to do everything. The Compact Disc (CD) digitalized music in the early 1980s, and with the discovery of the MP3 file in 1992, people were able to share music files on the Internet at high-speeds. MP3 stands for motion picture expert group 1 (MPEG), audio layer 3. An MP3 file compresses the music without decreasing the audio quality substantially. Compressing the file allows it to be transferred quickly over the World Wide Web.

A 19-year-old college drop out named Shawn Fanning created computer software that would, along with the MP3, change the digital music industry. Napster allowed people registered to a file sharing community to share files from their computers over the Internet with other people also registered in the community. Napster essentially eliminated a middle person between a request and a source. This free software allowed people to connect directly to each other and share MP3 files from their computers’ hard drive.

Soon, Fanning saw himself facing a lawsuit for copyright infringement. Napster had no authorized use of the MP3 files from artists or record

During December of 1999, the Recording Industry Association of America (RIAA) filed suit against Napster in the Northern District Court of California for contributory and vicarious infringement. The RIAA sought damages for at least $100,000 on every work that was infringed. Napster moved for a summary judgement because it claimed its status as an online service provider (OSP). The Digital Millennium Copyright Act granted protection from copyright infringement to OSPs, but Napster’s motion for summary judgment was denied in May of 2000.

“Copyright protection subsists in original works of authorship fixed in any tangible medium of expression, now known or later developed, from which they can be perceived, reproduced, or otherwise communicated.” This means that a person can copyright the expression of his ideas in a physical medium such as writing them on paper. Copyright owners have five exclusive rights that they may do or authorize. These include rights to reproduction, modification, distribution, public performance, and public display. When dealing with sound recordings, the copyright holder also has the right to “perform the copyrighted work publicly by means of a digital audio transmission.”

Since indirect copyright infringement cannot exist without direct copyright infringement, proving that Napster users were engaging in fair use would eliminate all claims of indirect copyright.

4. The effect of the use on the market for the work.

The Audio Home Recording Act of 1992 requires makers of digital recording devices and digital media to pay royalties into a fund that is distributed to writers and other holders of music copyrights. In exchange, manufacturers and users of digital recording devices have limited immunity from copyright infringement.

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