Napster, the internet song-swapping service, has entered into a
deal with German company Edel, one of the largest independent
record labels in the world. It is another step forward in the
attempt by Napster to avoid the legal issues that have surrounded
its service.
Edel represents popular artists such as Craig David and 2Step.
Under the deal, music by Edel artists will become available to
Napster users who agree to the company’s new subscription-based
service, although fees have yet to be agreed. Unlike the existing
service, Napster will make available MP3 files taken from Edel's
master recordings, instead of users making available MP3 files
taken from their own CDs.
The deal follows a recent agreement with Germany’s Bertelsmann
AG, owner of the record label BMG. Under that deal, the record
company has agreed to drop its lawsuit against Napster when Napster
begins charging users for the MP3 swapping service. The new deal
with Edel is less significant because Bertelsmann is one of the
world’s five largest non-independent record companies which are
together suing Napster for copyright infringement. Unless Napster
can win or, with Bertelsmann’s help, settle the legal action with
each of the four other major record labels, its future still hangs
in the balance.
Meanwhile, Napster is suing a souvenir manufacturer for
trademark infringement for selling unofficial t-shirts and caps
bearing Napster’s cat logo with slogans like “Download This”.
The lawsuit against Napster for copyright infringement is
currently awaiting a ruling by a US appeals court.
