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Napster was a peer-to-peer network for digital music distribution that faced legal trouble over copyrighted music. Founded in 1999 by Shawn Fanning and Sean Parker, it allowed easy access to MP3 files and became popular worldwide. The search engine scanned individual music collections of users, leading to millions of songs being downloaded without payment. Lawsuits were filed against users and the company, and Napster shut down in 2001. The company filed for bankruptcy in 2002, and the name was sold at an auction. The new owners relaunched it as a subscription service, paying copyright holders. Other companies faced similar legal challenges.
Napster® is the name of two companies, both involved in the distribution of digital music online in the form of MP3 files. The former, which operated from 1999 to 2001, was a peer-to-peer network that has attracted considerable litigation and legal trouble over copyrighted music. The company became widely known and influential in the new field of online file sharing before lawsuit from the recording industry forced it to shut down. Later, the company name was purchased and converted into a legal arm of the online music industry.
The original company was founded by Shawn Fanning and Sean Parker in 1999 when initial interest in the Internet was at its peak. File sharing, the sending of pictures, music or other material between two remote computer users, has already existed for years among users of computer bulletin boards and forums. The program, however, made it easy for even inexperienced computer users to search for specific songs in the new MP3 format, which is compatible with most media players. Within a year, the service had become very popular around the world, especially among teenage and college-age computer users.
The Napster® search engine did not rely on a central database, but rather scanned the individual music collections of all other users. As the user base expanded, more and more music was available, requiring no more than the time and computer storage space needed to download the files. Napster® users have downloaded millions of songs without paying music companies a dime. Even musicians, who receive royalties from music companies, have been barred from the loop. Rival networks have begun offering similar services; all, including Napster®, said they were not involved in copyright infringement. Musicians like Metallica and Dr. Dre disagreed, filing lawsuits against users and the company itself.
The Recording Industry Association of America (RIAA) has joined a lawsuit against Napster®, blaming the music industry’s ongoing economic collapse on file sharing services. Others, especially independent music fans and artists, said the practice was a boon, allowing them to connect with one another while skirting the industry hype. A US appeals court has sided with the recording industry, asking Napster® to monitor both users and files to stop illegal file sharing. Unable to comply, the company shut down its online network in 2001.
The Napster® company filed for bankruptcy in 2002. The name and logo, now familiar to computer users around the world, were sold at a bankruptcy auction. The new owners relaunched it as a subscription service, paying the copyright holders and thus meeting the legal requirements. It has become a competitor to Apple’s similar iTunes service. Meanwhile, other companies like LimeWire, Gnutella, and BitTorrent have moved into the free file sharing territory pioneered by the original Napster® and faced similar legal challenges. The second company was acquired by electronics retailer Best Buy in 2008.
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